Shafaqna English– Over the past few months, Chinese banks have quietly shifted their investment strategy by purchasing U.S. Treasuries, following an increase in dollar deposit rates—a move that sources say could help curb the yuan’s rise and comes at a time of sharply higher U.S. yields.
These purchases, which have not been publicly disclosed, mark a strategic pivot for commercial lenders, though Reuters could not confirm the scale of the buying or its impact on China’s total Treasury portfolio.
The rationale behind this shift is clear: with Chinese government bonds offering meager returns and regulators growing wary of the banks’ domestic bond exposure, U.S. Treasuries have emerged as a logical and profitable alternative for deploying their dollar reserves.
Source: Reuters