| Markets are buzzing about the Chinese government's surprise decision to devalue their currency, known as the yuan, leading to a 2 percent drop in the yuan's value in Tuesday trading, the largest one-day decline ever. The question is, what does it mean?
The markets—all of the markets—supplied some preliminary answers almost immediately. 1. It gives the Federal Reserve another reason to delay raising interest rates. The yield on benchmark 10-year Treasuries fell more than 5 percent in U.S. trading today, moving down to 2.12 percent in early afternoon. So the most immediate practical impact of China's move in the U.S. may be that mortgage rates stay lower for longer................................................Full Article: Source
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