China Still Largest Holder of U.S. Treasuries

When the U.S. Treasury announced its December numbers for net foreign holdings of U.S. Treasury bills earlier this month showing Japan had displaced China as the largest holder, we advised a watch and see approach. Having waited a couple of weeks we now see that the U.S.Treasury has revised its figures — not uncommon — and China’s holdings weren’t overtaken after all. China held $894.8 billion in Treasury securities at the end of December, more than the $755 billion previously estimated, the U.S. Treasury now says. Japan in December held $765.7 billion in Treasuries, less than the $769 billion first estimated. What hasn’t changed is that the value of Chinese holdings of  has fallen since June, when China had an estimated $915.8 billion in Treasury securities. (Full TIC report.) The revision was caused by adjustments made to account for purchases of Treasury securities made by China outside the country, such as via Hong Kong and the U.K. These are difficult to track. A further round of revisions will be announced at the end of April.

Advertisements

Leave a comment

Filed under China-U.S., Economy

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s