Recently, China has once again ** US bonds, which is the seventh consecutive month of sell-off. According to the latest data released by the U.S. Treasury Department, China's U.S. bond balance has fallen to only $769.6 billion, and the cumulative amount has reached $97.5 billion this year, and the number of holdings has also hit the lowest level since 2009. However, as of October, there was a two-month delay in the US Treasury Department's report. In fact, before February this year, China had already engaged in a seven-month sell-off. The increase in holdings in March was due to the anomaly in US bonds, which in turn speculated that the number of consecutive months of Chinese sell-offs in US bonds could be much longer than these seven months. In addition to China's **, it is worth paying attention to Japan's moves. In the previous month, Japan had just carried out more than $20 billion in **, but this month it has increased its holdings by $11.8 billion, which is a surprise. This hesitation may stem from the unwillingness to offend the United States on the one hand, and the United States debtOn the other hand, due to the continuous exchange rate of the yen, it has to fluctuate the US debt. Unlike other countries, China has continued to sell US Treasuries and increase its holdings over the last 12 months, which is already a clear strategy.
China's U.S. debt** campaign has been going on for seven months. Since the beginning of this year, the cumulative amount of China's ** U.S. bonds has reached $97.5 billion, and the holdings have fallen to $769.6 billion, the lowest level since 2009. Although this data is as of October, the actual sell-off in China may be much longer than these seven months. Prior to February this year, China had sold off for seven months in a row. The increase in holdings in March this year may be due to the anomaly of U.S. bonds, which led to an increase in the value of U.S. bonds held more than the sell-off, indicating that the amount of open interest has increased instead of decreasing. As a result, we can see that the continuous monthly number of Chinese sell-offs in US bonds may be longer, even more than two years. At the same time, China continues to increase its holdings**.
In contrast to China**, Japan's U.S. Treasury holdings have fluctuated. In the previous month, Japan carried out more than $20 billion in **, and surprisingly, this month it has increased its holdings by $11.8 billion. Since March this year, Japan's holdings have been fluctuating, with continuous overweights and **. This hesitation can stem from a number of factors. On the one hand, Japan may choose to pay for U.S. debt out of consideration for not wanting to offend the United StatesOn the other hand, due to the continuous exchange rate of the yen, Japan has to fluctuate the US debt. This back-and-forth selling operation hints at the uncertainty of Japan's investment strategy.
Unlike other countries, China has continued to increase its holdings of U.S. debt over the past 12 months. This is China's determined strategy. As a safe-haven asset, it has the characteristics of resisting the depreciation of the US dollar and economic uncertainty, so China chooses to increase its holdings to maintain and increase its value. The continued increase in U.S. debt holdings reflects China's smart strategy for the allocation and management of foreign exchange reserves.
China has once again taken the lead in U.S. bonds, and its seven-month streak of sell-offs is a cause for concern. However, this is only the data published so far, and the reality may be more complicated. Unlike China, Japan's U.S. Treasury holdings are volatile, which may reflect Japan's uncertainty about its investment strategy. China's firm choice to increase its holdings of U.S. debt is a smart management strategy. Against the backdrop of heightened global economic uncertainty, China's operations will continue to attract market attention and have an impact on capital markets.
As an editor, I am deeply concerned about China's U.S. debt moves. As one of the world's largest foreign exchange reserves, China's move to ** US bonds has attracted widespread attention from the market. At the same time, China's increasing holdings** also show the importance of safe-haven assets. As investors and readers, we should pay close attention to these changes and adjust our investment strategies in a timely manner. After all, investing is an art, and only by constantly learning and following up on market changes can you achieve a better return on investment. In the future, I will continue to pay attention to the investment trends in China and other countries, and pass on this information to readers to share more valuable investment insights.