China boosted purchases of US government debt for a second straight month in February, US Treasury data showed on Monday, but foreign demand for long-term US assets weakened. Even China’s buying was concentrated in short-dated assets such as bills, analysts said, a possible sign China’s willingness to extend cheap loans to the US government is fading. “We’re still concerned about China because it’s clear they are not investing in US long-term Treasuries at the pace they used to,” said Michael Woolfolk, senior strategist at BNY Mellon in New York. China, the largest foreign US creditor, increased Treasury holdings by $12.7 billion to $1.179 trillion, the second straight monthly increase after five months of net selling. Over the weekend, China widened the yuan’s trading band against the dollar, suggesting authorities feel the economy is healthy enough to withstand a stronger currency. That would reduce the central bank’s need to hold down the yuan’s value by buying Treasuries. China’s foreign exchange reserves total more than $3 trillion, with more than two-thirds thought to be in dollars. “China can’t just stop buying Treasuries. That would hurt them given their overall position,” said Douglas Borthwick, managing director of Faros Trading in Stamford, Connecticut.”
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor