China Moves to Shorter Maturity Treasuries Out of Bond Bubble Worries

"China is unlikely to exchange its dollar assets for assets in other currencies, but might swap long-term bonds for short-term bonds. The market worries that the USD appreciation and price hike of US treasury bills since the third quarter of last year was largely due to that capital flew back to the US to seek risk shelters, especially to the US treasury bonds market since last September. Therefore, with the market stabilizing, the price of US treasury bonds may fall back...."