Dollar regains some poise after China dismisses USA bonds report

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225 fell 0.42% as a stronger yen weighed on exporters.

Bitcoin dropped 9.2 percent to $13,517.83 on the Bitstamp exchange, after South Korea's justice minister said a bill was being prepared to ban cryptocurrency trading.

Officials in Beijing recommended China, the largest holder of USA treasuries, should slow or even halt its purchases of that debt, according to sources speaking to Bloomberg News.

"The news could quote the wrong source of information, or may be fake news", the State Administration of Foreign Exchange (SAFE) said in a statement published on its website on Thursday.

"The dollar may fall to around ¥110" in the days to come, the official said.

The team at Capital Economics isn't that anxious, however, noting that China's holdings of Treasury bonds have remained more or less stable in recent years and that any shift away would risk lowering the value of their own holdings.

Following the market's movement, bond veteran Gross, who is portfolio manager of the Janus Henderson Global Unconstrained Bond and Total Return strategies and a member of the global macro fixed income leadership team, took to Twitter on Tuesday to say "bond bear market confirmed".

The report sent US Treasury yields to 10-month highs and the dollar lower.

The analysts said in the note a global recovery and potential central bank action are possible drivers of a sustained sell off in bonds, though they stopped short of saying that this trend has begun.

Wall Street experienced its first loss-making session this year, over reports of rising US-China tensions.

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However, he ordered the government to continue processing renewal applications from people who had previously been covered. The frustrations have bubbled up publicly, perhaps most starkly on display when Democratic Rep.

A separate probe into Chinese intellectual property practices may also conclude as early as this month, Axios reported, and could result in tariffs on the country's consumer-electronics exports.

The dollar was down 1.13 percent at 111.37 yen, after touching 111.29 yen, its weakest since late November.

Against the yen, the dollar added 0.4 percent to 111.83, after hitting a six-week low of 111.27 yen in the previous session when it skidded 1.1 percent to mark its largest decline in nearly eight months.

The report comes amid increasing nervousness about bond weakness after the Bank of Japan said on Tuesday it will trim its purchases of Japanese government bonds, raising speculation it will reduce its monetary stimulus this year.

It is not the first time that the market has been gripped by fears of China dumping US debt.

The US dollar weakened against several currencies, with the Australian dollar rising 0.2 per cent to 78.4 US cents. Bond yields fell slightly on Thursday after data showed US producer prices fell for the first time in almost 1-1/2 years in December amid declining costs for services.

Japan's Nikkei also shed 0.3 per cent, slipping from 26-year highs hit the day before.

Brent crude rose 0.5 per cent to $US69.15 per barrel, staying near its highest level since mid 2015.

The FTSE100 shrugged most of this off managing to kick on to new record highs, helped by a pound that underperformed, despite a strong performance from the manufacturing sector in Q4, which prompted the NIESR to predict GDP growth for the United Kingdom economy of 1.8%.