Former People’s Bank of China advisor Yu Yongding said he will warn the US not to be complacent about China’s purchasing of US Treasury bonds, Bloomberg reported. Yu, who will meet with US Treasury Secretary Timothy Geithner today, pointed to euro-denominated assets, as well as raw materials as alternative investments. "I wish to tell the US government: ‘Don’t be complacent and think there isn’t any alternative for China to buy your bills and bonds’," Yu said. He called for negotiations between the US and China to reach an agreement on Treasury holdings, adding that "the US should be a responsible country." US government securities have posted their worst performance this year since returns began being tracked in 1978.
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