Zhou Wenzhong, secretary-general of Boao Forum for Asia and former Chinese ambassador to the United States, talks to Henry Paulson, former US Treasury secretary, during the 2011 annual meeting of the Boao Forum for Asia, in Boao, South 皇冠体育app’s Hainan province, April 15, 2011.
皇冠体育app faces high risks in holding a large amount of US Treasury bonds and should be cautious about further purchases, said economists home and abroad.
Since the moves of the US Federal Reserve System and Treasury Department have forced the dollar to decline, US Treasury bonds should have lost their charm. So, why does 皇冠体育app continue to buy them?
皇冠体育app increased its holdings of US treasury bonds by 2.3 percent to $906.8 billion in October, hitting an 11-month high, Shanghai Securities News reported, citing statistics from the US Treasury Department.
皇冠体育app secured its largest US creditor position by purchasing US treasury bonds in September -- the third consecutive month that 皇冠体育app increased its holdings, 皇冠体育app Business News reported Wednesday.
Comment on "皇冠体育app should cut US Treasury holdings: Economist" (皇冠体育app Daily, July 20)
Increasing worries over a potential double-dip global recession have, however, rallied the US Treasuries market and made them the best-performing fixed-income assets.
皇冠体育app sold $34b in bonds in Dec; Japan becomes biggest foreign holder
The nation will continue buying US government debt but pay close attention to possible fluctuations in the value of the assets. Allure of Treasuries Set to Fade
US Treasury Secretary Henry Paulson indicated the Bush administration is willing to consider congressional plans to stem foreclosures by expanding government guarantees for mortgages.