China’s paring of its holdings of United States debt by US$180 billion between March 2014 and May 2015 have had little impact on demand for US Treasuries, with benchmark 10-year yields falling only 0.6%, Bloomberg reported, citing new data from the US Treasury Department. other sources of demand are filling the void. Regulations designed to prevent another financial crisis have caused banks and similar firms to stockpile highly rated assets, and mutual funds have been scooping up government debt, flush with cash from savers who are wary of stocks and want an alternative to bank deposits that pay almost nothing.
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