China hasn’t been selling U.S. Government Bonds despite trade tensions

Is China selling U.S Government Bonds (Treasury Bills, T-Bonds and Notes) given the trade war tensions between China and the United States? The simple answer to that is no. Actually, no major foreign country holder of bonds is really selling.

But you might wonder what is going on if you make a chart look like this,

China holdings of US government bonds
Data Source: U.S. Department of the Treasury

Which if properly scaled looks like this,

China holdings of US government bonds
Data Source: U.S. Department of the Treasury

Notably though – Russian holdings of U.S. Government bonds declined 84% between March and May 2018, falling to $14.9 billion from $96.1 billion in just two months.

China and Japan hold more than $1 trillion each in Treasuries on their books, here is a table of holdings for the past year,

United States Government Bonds held by Foreign Countries
Data Source: U.S. Department of the Treasury

 

Related:

Contrary to popular belief – foreigners are not buying the bulk of United States federal government debt

Can the U.S. government really cope with rising bond yields?

Leave a Reply

Your e-mail address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.