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Mar 16, 2011

China selling off US Securities??

Is this a time to worry?

http://www.bloomberg.com/news/2010-08-17/china-cuts-long-term-treasury-holdings-by-most-ever-as-u-s-yields-decline.html
(August 2010 report about Jun 2010 data) This says they are worried as May to Jun holding came down from 867 to 843 Billion dollars. Now in latest numbers for Jan 2011, we have it as 1154 billion dollars. See treasury link below:

This shows the major foriegn holders of US Government debt.
http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

From Oct 2010, Chinese government has started reducing the holding - but how much? In Jan 2011, 1154 bi is still higher than Sep 2010 numbers of 1151 bi.

So, China is not really selling much of the US debt. Short term selling is all what we are seeing as of now.

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