Alone with China's inflation worries, yields surge

Reuters was alone in reporting on July 7 from a top-level source that Chinese Premier Wen Jiabao and his economic advisers had agreed on the need to pay attention to rising inflationary expectations. Within 24 hours, the central bank duly moved to tighten liquidity in the banking system by resuming sales of 52-week paper for the first time since November, triggering a surge in bill and bond yields. Reuters clients got the heads up first. This followed Reuters alone in reporting on July 4 concerns by influential central bank governor Zhou Xiaochuan that some of the money from China`s massive economic pump-priming could go to waste. Competitors credited Reuters.