China sells more US Treasury bills as Fed signals low interest in rate cuts
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China has unloaded $22.7 billion of US Treasury bills in February, reducing its total holdings to $775 billion. The UK is expected to surpass China as the second-largest foreign holder of US Treasury bills. Japan remains the top buyer with a total of $1.168 trillion of US debt. China's diversification of its foreign holdings is driven by concerns over security and the delay of expected interest rate cuts by the Federal Reserve. Beijing is also increasing its investments in gold. Analysts believe further sell-offs of US Treasury bills are possible, despite discussions between US Treasury Secretary Janet Yellen and her Chinese counterparts. The combined holdings of Europe and Japan are larger than China's, which could mitigate the impact of the sell-off on the US.
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