|S. Rina |||Jan 20, 2017 09:53 AM EST|
(Photo : VCG/GettyImages) China continues to cut its US treasury holdings for the straight sixth month.
China continues to cut its US treasury holdings for the straight sixth month. It sold $66 billion worth of US debt in November, taking its holdings to the lowest level since 2010. China is currently taking steps to boost up its local currency.
The month of November also witnessed the largest monthly decline since December 2011, when the country offloaded $102.7 billion worth of US debt. China gave up its top US debt holder position to Japan in the month of October. The country has taken this step to curb capital outflow.
Like Us on Facebook
The newly released data showed that the country held $1.049 trillion in US debt during the month of November. China has sold $194.66 billion in US treasury during the six months through November. In the past 12 months, it shed $215.11 billion worth of US debt.
Japan continued being the top holder of US treasuries as it held $1.108 trillion worth of US government bonds. However, even the Japanese holdings showed decline as its US treasury reserve in October stood at $1.131 trillion.
The overall foreign holding of US government debt hit its lowest level since 2014 as the November data showed only $5.94 trillion, down $96.1 billion from the month of October. It has sparked the speculation that Fed may increase interest rate in the following months.
China is selling off its holdings for boosting up the value of yuan as well as for containing capital flight out of the country. Yuan has shown a steady decline in its value against dollar throughout the previous year. Its continued selling has brought about more volatility in US government bond prices.
©2015 Chinatopix All rights reserved. Do not reproduce without permission
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
China Pork Prices Expected to Stabilize As The Supplies Recover
Elephone P9000 Smartphone is now on Sale on Amazon India
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?