CHINA IS DUMPING BONDS To Rattle US Stocks, But Here's The Catch. By Gregory Mannarino

The sell-off in the bond market last week is being called a Blood Bath by the MSM however, there is no mention by the MSM of who is selling them.

It is very simple to deduce who the seller is, its China, the largest holder of US debt besides the Federal Reserve. China is seeking to cause "some" disruption in the US stock market in order to bring the US to the negotiating table with regard to the worsening trade war. Understand, China has little interest in bringing down the US stock market to any large degree, or the US economy for that matter, as both the US and China need each other for bilateral trade.

China is using the Achilles heel of the US, our overwhelming debt, and the fact that we need to constantly sell more debt onto the market, as a weapon in this trade war. Again- China DOES NOT want to seriously hurt our markets or our economy, but is using the debt market as a negotiating tool.

Here is THE CATCH!
For any market to work there must be a seller and a buyer. In the case of China dumping US debt in order to push the 10yr higher, (something the stock market does NOT like), they must sell the bonds at a loss.

$$$... I believe that China is shorting the bonds they are dumping, thereby either:

1. Breaking even on the bonds they are selling or
2. Profiting by shorting the bonds they are selling/dumping.

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