China has once again ** US bonds, which is the seventh consecutive sale this year. According to the latest data released by the U.S. Treasury Department, China's current balance of U.S. bonds is only 769.6 billion, and the cumulative amount since the beginning of this year has reached 97.5 billion, the lowest position since 2009. However, this is only the data up to October, and due to the delay in the release of the US Treasury report, in fact, China's ** consecutive monthly holdings of US debt may be much more than that.
In March of this year, China's holdings increased, but not necessarily due to behavior, but probably due to the sudden increase in the value of US bond holdings. Over the past 15 months, China has likely been in the US debt. In the middle of last year, although there was a slight increase in China's holdings for two months, this may have been due to a slight increase in US bonds. Therefore, judging from the changes in U.S. bonds, the continuous monthly value of China's U.S. bonds may be longer, and may even last for more than two years.
And compared to China**, it is surprising that Japan's holdings have increased. According to the latest data, open interest in Japan reached 1098.2 billion US dollars, an increase of 11.8 billion from the previous month. Last month, Japan just exceeded 20 billion, and this month it has increased by 11.8 billion, does this mean that Japan regrets the previous one?Since the beginning of this year, Japan's holdings have increased or decreased many times, and they have been fluctuating without a clear direction. This back-and-forth selling is likely to reflect Japan's hesitation in dealing with U.S. bonds. On the one hand, it may be out of the consideration of not wanting to offend the United StatesOn the other hand, because of the yen exchange rate, it has to fluctuate the U.S. debt.
While other countries have different ways of doing things, China's sell-off strategy for US Treasuries is clear. In the past 12 months, China has not only continued to increase its holdings of U.S. bonds, but also continued to increase its holdings, which is a set step for China.
There are many reasons why China is selling off US bonds. First, China's holdings of U.S. bonds are huge, and over-reliance on U.S. debt investments poses serious risks and volatility. Second, the high level of U.S. debt and the lack of effective resolution of the long-term fiscal deficit have also raised concerns about the risk of continuing to hold U.S. debt. In addition, a series of protectionist measures taken by the United States in recent years and the escalation of the war have strained Sino-US relations, and China believes that selling US bonds is a response and response.
In addition to selling US bonds, China is also massively increasing its reserves. As the world's largest producer and consumer, China uses it as a safe-haven tool and a reserve of value to reduce its dependence on the US dollar. As a stable asset, it can act as a safe-haven asset when the international financial market is turbulent, providing China with greater financial security.
In short, China's strategy of continuing to increase its holdings of U.S. debt is a response to the current international economic situation and geopolitical risks. While protecting its own interests, China is also gradually adjusting its international investment and reserve structure to better cope with future uncertainties and challenges.
China's move to increase its holdings of U.S. bonds is a coping strategy under the current international political and economic situation. As the world's second largest economy, China's investment initiatives and financial policies have a significant impact on the global economy and financial markets. As one of the world's largest safe assets, China's large-scale sell-off of U.S. bonds has undoubtedly brought a certain impact to the global market.
However, China's U.S. debt and increased holdings are not just a simple financial decision, but also a response to international politics and geopolitical relations. At present, Sino-US relations are tense, friction is escalating, and US protectionist measures have brought great challenges to China. Against this backdrop, China needs to reduce its dependence on the United States and protect its interests by adjusting its investment and reserve structure.
In addition, the increase in holdings** is also a manifestation of China's stabilization of economic and financial risks in the international financial market. As a stable safe-haven asset, it can provide greater financial security and is of great significance to China's international investment and reserve structure. At the same time, the market also provides more investment opportunities, providing more options for China's positioning and role in the global economy.
To sum up, China's move to increase its holdings of U.S. bonds is a response to the current complex international situation and geopolitical risks. While protecting its own interests, China is also actively adjusting its international investment and reserve structure to cope with future uncertainties and challenges. This is a concrete action taken by China to safeguard financial security and promote economic development, and it is also an important step for China to play a greater role on the global stage.