Report on China slowing US bond purchases may be ‘fake,’regulator says. This week we learned the importance of globalization ininternational business and government. A report that China may be considering diminishingor wavering purchases of U.S. Treasury bonds may be based on incorrectinformation and may be untrue, the country’s foreign exchange manager said thisprevious Thursday. Bloomberg News reported on Wednesday that Chinese officials considerthe country’s vast foreign exchange holdings had advocated slowing or haltingpurchases of U.
S. Treasury bonds in the middle of a less attractive market forthem and rising U.S.-China trade tensions.
The report sent U.S. Treasury yieldsto 10-month highs and sent the dollar lower than expected.”The news could quote the wrong source of information,or may be fake news,” the State Administration of Foreign Exchange (SAFE)said in a statement published on its website. Watching the events unfold, U.S.
10-year Treasury yield edged down to 2.53 percent from Wednesday’s close of2.54 percent, while the dollar gained three tenths of a percent to 111.72 yenafter the regulator’s statement.China has begun to diversify its foreign current reservesinvestments to yield “safeguard the overall safety of foreign exchangeassets and preserve and increase their value”, the SAFE said. The forexreserves securities in bonds is a market activity, with investorsprofessionally overlooking according to market conditions and investment needs.
Currently China has the largest foreign exchange reserves which roseexponentially, as tighter regulations take place discouraging monetary outpour. C. (2018, January 11).
Report on China slowing US bondpurchases may be ‘fake,’ regulator says. Retrieved January 11, 2018, fromhttps://www.cnbc.com/2018/01/10/reports-on-china-slowing-us-debt-buying-could-be-based-on-wrong-information-source-says.html