China Reduces Holdings of US Treasuries

From Merrill:

"That’s right. Friday’s TIC data showed China selling on net $5.8 billion of its Treasury holdings, the largest outside of a $10 billion decline in June 1997 and the first outright sale since Oct 2005. This will further add to concerns that the Chinese, and in particular the PBOC, will noticeably diversify their reserve holdings."

Be careful what you ask for, if you don't want the Chinese to manage their currency, then they don't need to buy as many Treasury Bonds, and that means rates go up in the US.