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8/18/2015 excerpt for Seeking Alpha:
.... the PBOC took fresh steps to offset capital outflows prompted by its weakened currency. China's central bank placed 120B yuan ($18.8B) worth of seven-day reverse repos into the money market during the session....... https://mail.aol.com/webmail-std/en-us/suite
The weakening of the Yuan requires the government to inject money into the economy to maintain purchasing power. China may sell some of their reserves of US treasury bonds to finance their activity. Putting downward pressure on US treasuries.
Further weakening may mean more downward pressure on US treasuries.
I spend 60% of my time in Shanghai area and have been doing so since 4 years back. Our company and other GM´s who i spend my free time with have seen the benefit of manufacturing good´s in China dissapear epesically in comparison with European companies. We have moved and are moving production back to Europe and to our plant in India due to the increasing cost in China. We have 2 plant´s in Sweden and 1,5 years ago Yuan and SEK was 1:1. Day before they devaluated it was 1: 1,4. The benifit was about 30 % in favour of China erlier suddenly it was more expensive to produce certain product´s in China especially if your main focus are exporting to Europe. I think this was better for USA that China devaluated than that USD value was increased by increasing interest rate which could have offset the balance between Euro and USD. Now the cost of production is simular in USA and Europe.