22.3 C
New York
Tuesday, May 24, 2022

China Reduced U.S. Treasury Holdings for Third Straight Month

China Reduced U.S. Treasury Holdings for Third Straight Month© Reuters. China Reduced U.S. Treasury Holdings for Third Straight Month

(Bloomberg) — China’s holdings of U.S. Treasuries fell for a third consecutive month in August as the Asian nation struggles to prevent the yuan from weakening.

China’s ownership of U.S. bonds, bills and notes was $1.165 trillion, down from $1.171 trillion in July, according to data released by the Treasury Department on Tuesday. Japan, which is the largest foreign owner of Treasuries after China, decreased its holdings to $1.03 trillion from $1.036 trillion a month earlier.

Beijing’s sale of Treasuries is sometimes viewed as a response to the trade war, especially after China’s ambassador to the U.S. signaled in March his country could scale back purchases of the debt to retaliate against American tariffs. President Donald Trump since July has imposed tariffs on about half of Chinese imports, with Beijing responding with duties of its own on American goods.

But China has allowed its foreign-exchange reserves to decline as part of a policy to stabilize the yuan and prevent it from weakening further. The yuan already has depreciated about 5 percent against the dollar in the past year amid signs of an economic slowdown and capital flight. Trump has accused Beijing of deliberately weakening its currency to stimulate exports.

Overall foreign holdings of U.S. Treasuries rose $35.4 billion to $6.287 trillion in August, with Brazil, Saudi Arabia and Ireland increasing their ownership.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles