Press "Enter" to skip to content

China’s US Treasuries holdings fell in March for first time in four months


China’s holdings of Treasuries fell in March for the first time in four months, dropping by $10.4 billion from February to $1.12 trillion, the lowest level in near two years, according to US Treasury Department.

China remained the top foreign holder of US sovereign debt, ahead of Japan.

The data preceded the recent deepening of the trade war, which has prompted renewed speculation that Beijing could sell American assets to put pressure on Washington.

Since last week after a dismal 10-year Treasury auction, there has been renewed speculation whether China may sell its US debt in retaliation for increased tariffs on $200 billion of its exports to the United States.

The latest data on China’s US bond holding were collected before a sudden breakdown in trade talks between the world’s two biggest economic powers 1-1/2 weeks ago and prior to the US tariff hike on Chinese goods, which went into effect last Friday.

“The decline this month brings China essentially flat to where they were in February, erasing the increases from December through February,” Jefferies LLC’s senior money market economist Tom Simons wrote in a research note.

Meanwhile, foreigners resumed sales of Treasuries in March as U.S. 10-year yields fell to 15-month lows after the Federal Reserve signaled it would not raise interest rates in 2019, according to the latest Treasury data.

They sold $12.53 billion in U.S. government debt in March after buying $19.91 billion the month before.

Related Post

China’s bond defaults hit new high in 2018, ... (The article has 682 words) China's bond defaults hit a new high in 2018 as the world’s second biggest economy lost steam amid a trade war with the U...
Overheated convertible bond market raises concerns While Chinese stock market is staging a strong rally since January, debt investors are rushing for a slice of the country’s nascent convertible-bond m...
Four bond defaults in a single day highlight priva... Four Chinese private companies announced defaults on a total of 4.3 billion worth of bonds on Monday alone, highlighting difficulties faced by the pri...
China brings back CDS-like CRMW to boost bond sale... China is bringing back the Credit Risk Mitigation Warrants (CRMW) in a move boost bond issuance by private companies which have become difficult with ...
Major Chinese P2P Lender Caogen Touzi Gets In Trou... Caogen Touzi, once star P2P online lender in China, becomes the latest troubled online lending platform, extending a surge in P2P collapses starting f...


Comments are closed, but <a href="" title="Trackback URL for this post">trackbacks</a> and pingbacks are open.