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China Increased Its US Debt By 7 Billion 600 Million US Dollars In April, &Nbsp, And The First Increase In May.

2011/6/16 11:27:00 56

Increase In US Debt Growth

U.S.A Treasury Department The international capital flows report (TIC) released on Wednesday (June 15th) shows that China increased its holdings of US Treasury bonds to US $7 billion 600 million to $11525 billion in April, ending the 5 consecutive month of net sales, and is still the first offshore holder of US Treasury bonds.


In February this year, the US Treasury Department revised the US Treasury bonds held by China in December 2010 to a total of 1 trillion and 160 billion US dollars, up nearly 35%. Data also show that as early as June 2010 or even earlier, the total amount of treasury bonds held by China was over trillion.


Traceable revised data show that since July 2010, China has continued to slightly increase its holdings. US Treasury bonds Until October 2010, it reached a high level of US $1 trillion and 175 billion. Since then, China has accumulated a total of 304 billion US dollars for 5 consecutive months.


Although it is perfectly natural to pay back debts, it is a big problem for the Federal Reserve to pay the huge debts such as trillions of dollars. According to public data in April, nearly 2 cents and 6 cents of US $1 in foreign debt raised by the US Treasury came from China.


In this regard, Zhang Minjie, director of the [2.85 -2.73%] Futures Exchange (Hongkong), said that the Fed has become a well known secret by implementing a weak dollar policy in disguise.


But China's passivity in the US Treasury issue seems to be forced. Zhang Taowei, a professor at the school of economics and management at Tsinghua University, looks like the European sovereign debt crisis is still raging. Japanese economy In the current economic situation, buying US dollar assets is a relatively safe move.


It is worth noting that Japan, which was hit by the strong earthquake and tsunami in March, did not sell the US debt as much as expected, but ended the steady increase in US Treasury bonds for 9 consecutive months.


TIC data show that in April 2011, Japan held $906 billion 900 million of US Treasury bonds, a decrease of 1 billion US dollars from last month. From June 2010 to March 2011, Japan increased its holdings of US Treasury bonds by US $108 billion.


The UK's third largest overseas holder, Britain's holdings, increased from US $325 billion 200 million in March to US $333 billion, increasing US $7 billion 800 million, and the oil exporting countries subsequently reduced to US $221 billion 500 million from US $222 billion 300 million in March, reducing US $800 million. In Brazil, one of the BRICs countries, US debt holdings increased from $193 billion 500 million in March to US $206 billion 900 million, increasing US $13 billion 400 million.
 

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