China Adds USD28 Billion in US T-Bonds for Biggest Increase in Two Years
Yicai Global
/SOURCE : Yicai
China Adds USD28 Billion in US T-Bonds for Biggest Increase in Two Years

(Yicai Global) May 16 -- China has increased its holdings of US treasuries by the most in two years in a sign of capital outflows easing in the country.

Chinese holding of US government bonds, notes and treasury bills rose by USD30 billion to USD1.1 trillion in March, the highest rise since March 2015.

The country remains the second-largest overseas holder of US debt, a US Treasury Department monthly report showed yesterday. Combined with the USD3.7 billion rise in US debt holdings by Belgium, often seen as a proxy for Chinese purchases, in March would make their combined increase in holdings the largest since 2014. As the economy revives and China's government sets tighter capital controls, the yuan exchange rate is stabilizing, helping stem capital outflows. China's foreign reserves swelled for the third straight month in April to stand at USD3 trillion at the end of the month, central bank data show.

Japan, the country with the most US government bonds, upped its stash of US debt by USD3.4 billion to USD1.12 trillion in March.

 

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Keywords: US Treasuries , Pboc , Chinese Economy