China sold the most United States Treasuries in more than two years in March, magnifying concerns that the country might use its position as the US government’s largest foreign creditor in the trade dispute between the two countries, said the Financial Times.
China sold $20.5 billion of US government bonds over the course of the month, according to data released by the US Treasury.
The data covers trading in Treasuries with a maturity of more than one year by foreign official institutions such as central banks as well as private investors. Other major foreign holders, including Japan and the UK, were also net sellers.
China has now sold Treasuries every month since September, besides for a small net purchase in February. A fear in the US is that China could ramp up its sales of Treasuries in an attempt to disrupt the market and put upward pressure on US interest rates, in effect raising borrowing costs for Washington, reported FT.
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