China drops 97% of it's TBills

[IanMacQuaide]

(CNSNews.com) - China has dropped 97 percent of its holdings in U.S. Treasury bills, decreasing its ownership of the short-term U.S. government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the U.S. Treasury.

http://cnsnews.com/news/article/china-has-divested-97-percent-its-holdin

 

[Random.Capital]

It coincides with the hard realities of the oil bull - China is a heavy, heavy subsidizer of internal oil consumption - the more oil goes up, the more foreign reserves China needs to burn just to stand still.

Bernanke knows this.

Beijing knows that Bernanke knows this.

Interesting times.

 

[RewriteQuran]

Quote from Random.Capital:

It coincides with the hard realities of the oil bull - China is a heavy, heavy subsidizer of internal oil consumption - the more oil goes up, the more foreign reserves China needs to burn just to stand still.

US has been doing this for quite some time
http://en.wikipedia.org/wiki/Global_strategic_petroleum_reserves

 

[Martinghoul]

Quote from IanMacQuaide:
(CNSNews.com) - China has dropped 97 percent of its holdings in U.S. Treasury bills, decreasing its ownership of the short-term U.S. government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the U.S. Treasury.

http://cnsnews.com/news/article/china-has-divested-97-percent-its-holdin

So what? Doesn't the article also mention that China replaced these bills with longer-dated treasuries and agencies? That's just liquidity management on their part...

 

[intradaybill]

Quote from Martinghoul:

So what? Doesn't the article also mention that China replaced these bills with longer-dated treasuries and agencies? That's just liquidity management on their part...

Out of control media sources are one of the biggest danger to society. Especially when they report parts of a story, like in this case.

I believe the Chinese increased their bond portofolio duration to gain higher interest. As a matter of fact they purchased the whole 250 Billion portfolio of longer maturity Treasuries PIMCO sold a few months ago.