What is the reason for increasing us Treasury holdings for three consecutive months?
I find that there are fewer people clamoring that China should sell US bonds recently. I wonder if it is because the financial knowledge of netizens has improved or the number of people with rhythm has decreased.The latest data shows That China has increased its U.S. Treasury holdings for three months in a row, with the last two months adding a bit more.In the middle of each month, the U.S. Treasury Department publishes the holdings of U.S. debt by country through the end of the previous two months (data for the end of November 2021 is currently available).According to the data, China currently holds a total of $1,080.8 billion of US Treasuries at the end of November 2021, compared with $1,065.4 billion at the end of October 2021. In other words, China increased its holdings by $15.4 billion in November.In addition, China increased its holdings by an even larger amount to $17.9 billion in October 2021, followed by a small increase of $500 million in September 2021.As a result, China has increased its holdings for three months in a row.Globally, Japan remained the largest foreign creditor to the United States, increasing its holdings by $20.2 billion in November to $1,340.6 billion.The top five foreign creditors of the US (Japan, China, the UK, Luxembourg and Ireland) are all increasing their holdings.Hong Kong and Taiwan currently hold us $248.4 billion and US $235 billion respectively, making greater China’s total holdings of US debt, including the mainland, more than Japan’s.Of course, with $29 trillion of U.S. debt issued globally, the holdings of U.S. debt by a single country are small compared to the total, and most of the debt is actually bought by the Federal Reserve.Why have mainstream countries, including China, increased their holdings in recent months?Because yields on US treasuries have gone up.Us bond yields are trending higher and have further to go as the Fed’s rate-setting meeting continues to signal that us interest rates will rise.The US is expected to raise interest rates three times in 2022 and the same three times in 2023, which will increase the coupon rate of newly issued US bonds and the yield of us bonds in the secondary market. Mainstream countries will increase their holdings of US bonds in advance to improve investment efficiency.As far as the current situation is concerned, it is impossible to separate from the US dollar and US debt, which is just the wishful thinking of some We-media. The lack of basic financial knowledge makes these people constantly output wrong views.China’s increase in U.S. debt holdings in the last three months is a slap in the face.Psychologically or not, the dollar’s status is unlikely to change until the yuan formally becomes the world’s dominant trading currency.Just like a chip stuck in the neck doesn’t change overnight.It’s better to recognize the facts, and avoidant self-numbing won’t solve anything.The above is purely personal opinion, welcome to pay attention to, like @ Wang Wu said your support is the best encouragement for the original!