Chinese cautious on Treasury Notes

February 3, 2009 by · Leave a Comment
Filed under: Global News 

I wonder why, maybe because we are going to issue between 2-3 trillion dollars worth this year and we are still not sure if that is even going to solve the current credit & confidence problem?

News (Reuters):

China’s willingness to continue buying United States Treasury securities in large numbers will depend on its need to protect the value of its foreign investments, the Chinese premier, Wen Jiabao, said Saturday. He also said that a stable yuan is in everyone’s interests.

“Whether we will buy more U.S. Treasury bonds, and if so by how much — we should take that decision in accordance with China’s own need and also our aim to keep the security of our foreign reserves and the value of them,” Mr. Wen said.

His enigmatic remarks, made near the end of a visit to Europe, could raise new concerns about China’s commitment to continue purchasing United States government debt. 

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