Chinese USD Diversification Continues: First Euro Bonds, Now JGBs

China is in effect propping up everything that's not the dollar: ``Wherever in the curve China is focusing, the fact that it continues to actively buy [Japanese Government Bonds] after 5 consecutive months of declines in its UST purchases (coupled with the news broken by Zero Hedge that Fed custodial accounts of foreign UST holdings suffered the largest one week drop in almost 4 years) is sending a very clear political message to the US.''