皇冠体育app

Money

皇冠体育app buys $505m of Spanish bonds

(Agencies)
Updated: 2010-07-13 17:32
Large Medium Small

皇冠体育app bought several hundred million euros worth of Spanish bonds last Tuesday, the Financial Times reported, citing people familiar with the matter.

The report said 皇冠体育app's State Administration of Foreign Exchange (SAFE), the central bank's arm that manages 皇冠体育app's official currency reserves, was allocated as much as 400 million euros ($505 million) of Spanish 10-year bonds.

During the debt deal last Tuesday, demand rose to 14.5 billion euros in just a few hours, and SAFE ordered for about 1 billion euros, according to Financial Times.

Related readings:
皇冠体育app buys $505m of Spanish bonds SAFE: Europe is still a key investment market
皇冠体育app buys $505m of Spanish bonds 皇冠体育app to keep yuan basically stable: SAFE
皇冠体育app buys $505m of Spanish bonds 皇冠体育app's FX reserves not 'atomic weapon': SAFE 
皇冠体育app buys $505m of Spanish bonds SAFE uncovers $7.35b of hot money inflows

Analyst think that 皇冠体育app's purchase is a sign that Asian investors are regaining confidence over the eurozone market, which was forced into a hiatus by the Greece debt crisis.

SAFE expressed confidence in the European market last week, saying that Europe would remain one of the major markets for 皇冠体育app's more than $2.4 trillion foreign exchange reserves despite the continent's sovereign debt woes.

"Europe was, is, and will be one of the major investment markets for 皇冠体育app's foreign exchange reserves," SAFE said in a statement last Tuesday.

It was also reported that 皇冠体育app has bought a net 735.2 billion yen ($8.3 billion) of Japanese bonds in May, more than doubling purchases for this year.

SAFE ruled out the option of dumping its vast holdings of US Treasury securities, and said the constantly adjusts of portfolio?is to maximimize returns. Bankers say 皇冠体育app's total holdings of dollar-denominated assets accounts for perhaps two-thirds of its reserves.

Growth of 皇冠体育app's foreign exchange reserves are slowing as the total reached $2.4543 trillion by the end of June, up 15.1 percent year-on-year, the People's Bank of 皇冠体育app (PBOC), the central bank, announced on Sunday.