Holdings and reduce logic

U.S. Treasury international capital flows report showed that in September China to continue to sharply increased holdings of U.S. treasuries, the United States surpassed Japan to become the number one creditor. But statistics show that U.S. treasury bonds held by the 28 major economies, there are 15 in the month in September to reduce the national debt of the United States. In recent years, the main holders of U.S. bonds has been Japan, China and Britain to occupy the three countries to occupy the total holdings of overseas investors to hold more than half of the total. In September, for example, China, Japan, the United Kingdom were held by 585,000,000,000 U.S. dollars, 573,200,000,000 U.S. dollars, 338,400,000,000 U.S. dollars, accounting for overseas investors holding 52.3 percent of the total. The total output of the top, but each country has a month to hold a different amount of change. China in 2007, continued reduction of U.S. treasury bonds, and enter it in 2008 after the holdings on a monthly basis, although the two have had to reduce the situation, but the holdings remain the main trend. Japanese holdings of fluctuations in the law showed "no law", the monthly amount of the bonds held by the United States has been wide fluctuations in the trend; the U.S. national debt of the country's third-largest holder of Britain, since September 2007 Since the basic stability of the present situation of holdings. According to the analysis of the industry, the allocation of foreign exchange assets with the country's macroeconomic situation and should not be generalized. Rapid appreciation of the yuan in 2007, look at the relative depreciation of the U.S. dollar will result in the shrinking foreign exchange reserves, it month by month in line with the reduction of the time, to enter in 2008, RMB appreciation slowed down, the U.S. dollar in the short term strengthening trend will slowly make our country Foreign currency assets held by short-term gains. A fixed-income securities analyst at the Ministry told the "Business News", Japan is a special economies, very sensitive to changes in exchange rates. Once the rapid appreciation of the yen will be a serious blow to their trade, the Bank of Japan should maintain a regular basis, the yen intervention tools are often adopted to achieve Japan's foreign exchange reserves, the monthly Japanese government bonds held by the United States The situation will inevitably have a greater volatility. "Japan's economy is also tight, domestic demand for capital is also relatively large holdings of U.S. treasuries and their own economy has a great deal." A Chinese-funded banks to engage in foreign exchange investors said. In addition, the oil-exporting countries in the overseas holder of U.S. government bonds have been in the forefront, including Iran, Iraq, Kuwait, Saudi Arabia and other countries. In addition to China in September and replaced by Japan, the Caribbean banking centers to replace the five to enter Brazil. In the region, including the Cayman Islands, the Bahamas, Bermuda and Panama and other places in the region and the world's hot money is the main gathering place.