Two IMPORTANT points regarding that China story :
- Trump declared China as an economic aggressor.
- Gundlach and Gross both said there were EVIDENCE that China was halting their treasury buying.
Indeed, this story was not fake news. They're just reacting.
Regarding the dollar sell off, the markets are realizing that if China is out, who will buy those bonds? The FED will. Therefore, they will need to kill that dollar to buy this all up.