China adds $17.7 billion Treasury debts: US data

[Communist]

China adds $17.7 billion Treasury debts: US data
08:24, May 18, 2010

In the midst of worsening European debt problems, China raised its holdings of U.S. government bonds for the first time in six months, the U.S. Treasury Department data said.

China, the biggest holder of US sovereign debt, increased its long-term Treasury holdings to US$895.2 billion, up US$17.7 billion from February, the Treasury Department said in its latest monthly report on global capital flows.

The last time China hiked its bond holdings was September 2009.

Net foreign purchases of US long-term securities leaped to a record US$140.5 billion in March from US$47.1 billion in February, the Treasury data showed, amid mounting concerns about the Greek debt crisis.

"Motivated by safe-haven concerns and worries about the Greek debt crisis, private foreign investors increased their purchases of US Treasury bonds and notes, government agency bonds, and even private corporate bonds," said Tu Packard, a senior economist at Moody's economy.com.

"This not only is a strong vote of confidence in the US economy, but also speaks volumes about the extent of investor unease with policy management of the European sovereign debt crisis and the implications for the world economy."

Japan, the world's second-largest economy and the number-two holder of Treasuries, increased its holding to US$784.9 billion from US$768.5 billion.

News of the record amount of demand for US dollar-denominated assets in March came as the euro sank to a four-year low against the dollar on Monday amid concerns about sovereign debt problems in Europe.

Michael Woolfolk at Bank of New York Mellon said the TIC data bode well for the budding US recovery from the worst recession in decades.

"These are positive developments for the funding of the US trade deficit and support for the dollar," he said.

By People's Daily Online

China adds $17.7 billion Treasury debts: US data - People's Daily Online

 

[Communist]

Summary Box: China boosts Treasury debt holdings

By: The Associated Press | 17 May 2010 | 07:53 PM ET

CHINA HOLDINGS: China, the largest foreign owner of U.S Treasury securities, boosted its holdings of Treasury debt by 2 percent to $895.2 billion in March. It was the first increase by China in six months.

FOREIGN HOLDINGS: Total foreign holdings of Treasury debt rose 3.5 percent to $3.88 trillion in March.

OUTLOOK: Analysts saw it as a good sign for the interest rates the government has to pay on its soaring budget deficits that foreign ownership is rising. They said that development reflected in part a flight-to-safety by investors worried about the fallout from the Greek debt crisis.

News Headlines

 

[below_freezing]

this is terrible.

US trading fake stock market numeric money for real money.

 

[Communist]

China's boost in Treasury holdings offers short-term relief

The reason » A rebounding U.S. economy and investors worried about debt crisis in Europe.

Combined News Services
Updated: 05/17/2010 06:14:55 PM MDT

Washington » China has boosted its holdings of U.S. Treasury debt for the first time in six months. That development could ease concerns that lagging foreign demand will force the U.S. government to pay higher interest rates to finance its debt.

The Treasury Department reported Monday that China's holdings of U.S. Treasury securities rose in March 2 percent to $895.2 billion, the first increase since last September.

Total foreign holdings of Treasury securities rose 3.5 percent, to $3.88 trillion.

The government reported that net holdings of long-term securities, which includes the debt of U.S. companies as well as government debt, rose $140.5 billion in March, the largest one-month gain on record. It surpassed the old record of a net increase of $135.8 billion in May 2007.

The big increase was influenced by two factors -- a flight to safety by investors increasingly worried about the debt crisis in Europe, and a rebounding U.S. economy that has sparked greater interest by foreigners in purchasing U.S. corporate debt.

Investors have grown nervous about the ability of Greece and other heavily indebted nations to repay their debt. Last week, European nations and the International Monetary Fund assembled a nearly $1 trillion support package to convince investors that their bond holdings are safe. But markets have remained nervous.

Stocks slid Monday after the euro hit a four-year low. The Dow Jones industrial average fell more than 100 points in midday trading.
Net purchases of long-term U.S. debt had increased $47.1 billion in February after an increase of $15 billion in January.

Those gains were seen as a good sign that foreigners continue to be interested in U.S. debt securities even in a period when Treasury debt has soared.

China is the largest foreign holder of U.S. Treasury securities. The $17.7 billion increase in March left its holdings at the highest level since November.

Japan, the No. 2 foreign holder of Treasury securities, also increased its holdings in March. It raised them 2.1 percent to $784.9 billion.

China's boost in Treasury holdings offers short-term relief - Salt Lake Tribune

 

[SXNJ]

It's only way to protect our $ property before using them to buy resource and company share

 

[applesauce]

although i dont see much as a replacement to park all those savings china must figure out how to not buy so much us bonds

 

[below_freezing]

INCREASE US DOLLAR

 

[SinoIndusFriendship]

^^^^^ Sssshhhhhhh!!!!!!

 

[below_freezing]

edited out =)

 

[applesauce]

i got an idea, put that money to space research and mine the moon!!!