China Trade Surplus Falls To 1/8 Prior Month Level
China Trade Surplus Falls To 1/8 Prior Month Level

Update 12:10 AM: OK, sports fans, we now have more meat. Note in particular how the decline was way above consensus forecasts. The fall in the surplus plus dollar strength (ie little/no need to intervene to keep the RMB from rising) also says China will have much less reason to buy dollar assets like Treasuries

The trade gap narrowed to $4.8 billion, about an eighth of the amount in the previous month, the customs bureau said in a statement. Exports tumbled 25.7 percent from a year earlier. Imports fell 24.1 percent.

The government has halted the yuan’s gains against the dollar and plans to cut export taxes to zero as demand dries up because of the global slump…