China threatens suicide by US bond sales

Advertisement

You’ve got to love this from the Global Times:

China may gradually reduce its holdings of US Treasury bonds to about $800 billion from the current level of more than $1 trillion, as the ballooning US federal deficit increases default risks and the Trump administration continues its blistering attack on China, experts said.

China, the world’s second-largest holder of US debts, has been systematically but determinedly trimming its holdings of US bonds in recent years. In the first six months of this year, China dumped about $106 billion worth of US Treasury bonds. On a yearly basis, China’s holdings of US bonds dropped by about 3.4 percent as of the end of June.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
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.