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Some nice MSM panic today via Reuters:
Whether China is reducing its vast holdings of U.S. Treasury bonds is a persistent question in global markets, and the recent escalation in trade tensions between the world’s two largest economies means the question is increasingly on investors’ minds. The U.S. Treasury’s latest report on international capital flows on Monday will provide an answer, albeit an imperfect one given the data’s two-month lag.
China has indeed been trimming its cache of Treasuries. In January, the latest reading, it held nearly $1.17 trillion worth of U.S. debt – the largest of any foreign creditor – down from around $1.2 trillion in August.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.