In an unprecedented agreement, the U.S. Treasury has agreed to give China direct access to its auctions. Per the deal, China is allowed to bypass Wall Street, and purchase Treasury Bills without placing any bids through primary dealers.
The deal wasn't announced publicly or in any message to primary dealers.
Not in the entire 237-year history of the US has any foreign government been granted such intimate access to
Although there were no laws being broken this certainly is quite dangerous.
China already holds more than $1.2 trillion in U.S. Treasuries.
Before long, China will own 50 cents on every dollar of U.S. debt.