Treasuries Pare Decline on Concern Yuan-Led Drop Was Overdone
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Treasuries pared losses on speculation the drop in debt in response to China’s decision to allow a more flexible yuan was too big to be sustained.
“The market is coming to the conclusion that it had overreacted to the news out of China,” said Charles Comiskey, head of Treasury trading at Bank of Nova Scotia in New York. “The policy and what it ultimately means is an open question. It’s so vague.”