>> Nail biting in the global bond market. Interest rates for US federal debt surged to a ten month high Wednesday, prompted by fears China is on the verge of rethinking its massive investment in American bonds, following a Bloomberg report. Christopher Beddor is a Reuters Breaking News columnist with a focus on China.
>> China holds a lot of US government debt, it holds about $1.2 trillion as of October. And what we're hearing right now is that there's reports that at least some officials in China have proposed either that China curb some of its sales, or at least slow the purchases of them.
And that's potential for either less purchases, or perhaps even an outright halt of any kind of purchases is leading traders to expect that there's gonna be less benign bond marketing coming, coming days.>> China is the biggest foreign holder of US treasuries, and any big moves it makes is sure to have consequences.
And it may be using that as leverage against possible actions from the White House.>> We do have a lot of investigations into steel and aluminum, for instance, that are coming due this month. There's also reports that perhaps a much broader investigation into Chinese intellectual property practices might come due as early as this month.
China wants to get across the message, as far as we can tell, that there will be some sort of retaliation or a tit for tat, if the US imposes a tariff.>> A warning not taken lightly by investors, who fear a spike in interest rates could threaten the current global economic recovery.