China boosts US Treasury holdings

China returned to its position as a net buyer of US Treasurys in March, reported the Wall Street Journal. As Greece’s sovereign debt crisis inflamed international concerns over the safety of financial assets, a flight to the security of US Treasurys pushed China to increase its holdings by US$17.7 billion to US$895.2 billion. The country has been a net seller since September, when it was feared that China might shift its asset holdings away from US Treasury securities. China sold US$11.5 billion in Treasurys in February. Japan, the second-largest purchaser of Treasurys, also increased its holdings to US$784.9 billion in March, a US$16.4 billion increase.