China will have to buy US Treasuries, even if not every month - BBH
|Bloomberg reported earlier this month that a senior, unnamed Chinese officials had recommended slowing or halting purchases of Treasuries.
This sparked a debate whether China can halt its Treasury purchases and the impact it would have on treasuries and the US dollar.
Marc Chandler from Brown Brothers Harriman says, "China will have to buy treasuries it it wants to accumulate reserves as there is simply is no other market as liquid and deep as the US Treasury market." He adds, "it could shift its allocation toward the euro but it gets significantly lower yields and less liquidity."
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