Bill Gross Asks The $64 Trillion Question: Is China Dumping Treasurys?

Zerohedge reports:

For months, we’ve been at pains to explain to anyone and everyone listening that China is dumping US paper at a record pace.

As we detailed on Tuesday evening, the new FX regime (i.e. the system in place since the dramatic August 11 yuan devaluation) is costing China dearly in terms of FX reserves.

The reason: the new, more "market-based" regime is ironically requiring more intervention than the previous system and this has led directly to the liquidation of more than $100 billion in USTs in the past two weeks alone (by SocGen’s math), which means that incredibly, Beijing has sold more US paper in the past two weeks than it had previously sold all year!

Bill Gross asks an important question.