- MarketPulse - https://www.marketpulse.com -

China’s US Treasuries Holdings Hit Record High

China’s holdings of U.S. Treasuries (BUSY) rose to a record in May even as net selling by private foreign investors in notes and bonds reached an all-time high, government data showed.

China stayed the biggest foreign owner of Treasuries as its holdings increased by $25.2 billion to $1.316 trillion, according to Treasury Department data released yesterday in Washington. Japan, the second-largest holder, cut its holdings to $1.11 trillion. The net long-term portfolio investment outflow was $27.2 billion after a revised decline of $21.8 billion the prior month.

The yield on the 10-year Treasury note reached a two-month high in May as speculation the Federal Reserve may consider tapering its unprecedented bond-purchase program crimped demand for the securities at the same time the Standard & Poor’s 500 Index increased to a record. China has increased its holdings of long-term U.S. government debt in seven of the past eight months of available figures.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Mingze Wu

Mingze Wu [5]

Currency Analyst at Market Pulse [6]
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu