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Could China tame its appetite for U.S. Treasuries?

Reuters 

(Reuters) - China is the world's biggest foreign holder of U.S. Treasuries, which it uses to manage the value of its currency and park its massive foreign exchange reserves. But a Bloomberg report on Wednesday suggested that China may be reviewing its vast holdings, sending Treasury yields to 10-month highs.Still, many factors limit China's room for maneuver when it comes to Treasuries.Why does China own $1.2 trillion of Treasuries in the first place?In part because Treasuries are the only instruments seen as liquid enough to park part of China's massive foreign exchange reserves, which have ...

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First Published: Thu, January 11 2018. 03:10 IST
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