``Beijing has options. As the Fed moves its portfolio to the long end of the curve, pushing down long-term interest rates, the relative appeal of short-term debt is increased. China might be tempted to do a "reverse twist" and move to the short end--muting the impact of the Fed's twist... The markets are already discounting the effectiveness of the Fed's latest move. If China moves its portfolio in the opposite direction, even muted expectations may be hard to fulfill.'' ''

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