LONDON, Jan 10 (Reuters) - U.S. long-dated Treasury yields hit fresh 10-month highs on Wednesday with traders citing a report by Bloomberg that Chinese officials have recommended slowing or halting purchases of U.S. government bonds.
The yield on 10-year U.S. Treasuries hit a 10-month high of 2.588 percent in European trade and was up 4 basis points on the day.
“The latest rise (in yields) is caused by the news that Chinese official are recommending lower purchases of U.S. Treasuries for their FX reserves,” said Mizuho strategist Antoine Bouvet, referring to a Bloomberg report. “The market is pricing in this possibility, but we still don’t have much have detail on this.”
Reuters was unable to immediately verify the report. (Reporting by Abhinav Ramnarayan, Editing by Dhara Ranasinghe)