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China still buying record amounts of U.S. bonds: report

Posted By admin On May 25, 2009 @ 3:35 am In Money Watch | Comments Disabled

Reuters [1]
Monday, May 25, 2009

China’s official foreign exchange manager is still buying record amounts of U.S. government bonds, in spite of Beijing’s increasingly vocal fear of a dollar collapse, the Financial Times reported.

In a story on its website, the FT quoted Chinese and western officials in Beijing as saying China was caught in a “dollar trap.”

The newspaper said China had little choice but to keep pouring the bulk of its growing reserves into U.S. Treasuries, which remains the only market big enough and liquid enough to support its huge purchases.

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China still buying record amounts of U.S. bonds: report 335x205 graph128c aj [2]

The FT’s story lent support to U.S. Treasury futures in Asian trading on Monday, analysts said.

“The FT article probably helped boost the confidence of Treasuries holders who were anxious about potential selling by other players amid worries of a possible U.S. downgrade,” said Yasutoshi Nagai, chief economist at Daiwa Securities SMBC.

Full article here [1]


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URLs in this post:

[1] Reuters: http://www.reuters.com/article/newsOne/idUSTRE54O15P20090525

[2] Image: http://www.efoodsdirect.com/products.html

[3] China is Again Buying Long-Term U.S. Treasuries . . . Does That Mean China is Betting on Deflation?: http://www.prisonplanet.com/china-is-again-buying-long-term-u-s-treasuries-does-that-mean-china-is-betting-on-deflation.html

[4] China explores buying $50bn in IMF bonds: http://www.prisonplanet.com/china-explores-buying-50bn-in-imf-bonds.html

[5] Are Foreign Purchases of U.S. Treasury Bonds Being Faked?: http://www.prisonplanet.com/are-foreign-purchases-of-u-s-treasury-bonds-being-faked.html

[6] China’s holding of US bonds drops first time in 11 months: http://www.prisonplanet.com/chinas-holding-of-us-bonds-drops-first-time-in-11-months.html

[7] China Slows Purchases of U.S. and Other Bonds: http://www.prisonplanet.com/china-slows-purchases-of-us-and-other-bonds.html

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