the visible hand

it is the theory which decides what can be observed – einstein

China Sells Treasuries, Signaling Diversification

Posted by ecoshift on June 16, 2007

Or is China actually signaling their irritation with our posturing protectionist senators? Worldwide
China Sells Treasuries, Signaling Diversification (Update1)
By Kevin Carmichael and Ye Xie

June 15 (Bloomberg) — Chinese investors sold more U.S. Treasury securities in April than any time in at least seven years, a signal the nation may be diversifying the world’s largest foreign-exchange reserves.

China, which owns more U.S. debt than any foreign nation except Japan, sold a net $5.8 billion of Treasuries, the first drop in holdings since October 2005, according to Treasury Department figures that go back to 2000. The nation held $414 billion of the $4.4 trillion of marketable Treasuries in April, according to today’s report.

China, whose reserves reached $1.2 trillion in March, and other Asian and oil-exporting nations are seeking to lift returns on their investments. That may push up yields on Treasuries, traditionally among the top investments for reserves, and erode demand for the dollar.


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