(Reuters) - The head of the U.S. Federal Reserve said on Wednesday that China is selling U.S. Treasury bonds because the yuan is under depreciation pressure.
"China has been selling Treasuries because its currency has been under downward pressure," Fed Chair Janet Yellen told a committee of U.S. House lawmakers.
There has been speculation that China and central banks in other countries are spending their dollar reserves to support their currencies, in order to offset an expected drain of capital due to slowing economies.
(Reporting by Jonathan Spicer and Richard Leong in New York; Editing by Andrea Ricci)
