Chinese Holdings of US Treasuries Soar in 2017

[Smaulgld]

Despite the popular China is dumping treasury narrative...

https://smaulgld.com/chinese-holding...easuries-2017/

[devil21]

I didn't watch whole video but when you say "Treasuries", what is the maturity duration? Big difference between 3 month bill and 30 year bond! The duration is kinda important to the narrative of China dumping Treasuries, instead of just a gross sum of holdings by month. If they've dumped everything over 1 year duration, for example, and are buying boatloads of bills a year duration and under, that's a pretty important distinction, no?

[Smaulgld]

I didn't watch whole video but when you say "Treasuries", what is the maturity duration? Big difference between 3 month bill and 30 year bond! The duration is kinda important to the narrative of China dumping Treasuries, instead of just a gross sum of holdings by month. If they've dumped everything over 1 year duration, for example, and are buying boatloads of bills a year duration and under, that's a pretty important distinction, no?

It would be somewhat important the duration of what they hold , but they could sell even the 30 year bonds without holding them to duration.
As to the breakdown - less than 10% of the outstanding over all foreign treasuries held are the 3month bills, over 90% are of the 2-10 year notes or 30 year bonds. China can use the notes and bonds as collateral so they are probably better off having longer dated notes and bonds to cover projects

[Zippyjuan]

The average US Treasury note has a five year maturity. China's holdings are probably about that too. https://www.quandl.com/data/USTREASU...ble-Securities

[phill4paul]

Why is America in the position that it has to float notes?

[Zippyjuan]

Why is America in the position that it has to float notes?

They like to spend more than they collect in taxes. Make promises to voters and then don't make anybody actually pay for them. Everybody is happy! Trump likes the idea so much he wants to add a few more $trillion with what he hopes will be the "biggest tax cut in US history" without having to make any budget cuts to help pay for them. You can keep your freebies and get some money back on top of it!

[devil21]

It would be somewhat important the duration of what they hold , but they could sell even the 30 year bonds without holding them to duration.
As to the breakdown - less than 10% of the outstanding over all foreign treasuries held are the 3month bills, over 90% are of the 2-10 year notes or 30 year bonds. China can use the notes and bonds as collateral so they are probably better off having longer dated notes and bonds to cover projects

So the total doesn't specify what the duration of China's purchases are. I think it's important to know what the durations they are buying are since it would show their "commitment" (for lack of better word) to the issues they are buying and their concern about a default. Just my .02.