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Politics : American Presidential Politics and foreign affairs
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To: DuckTapeSunroof who wrote (31205)1/8/2009 5:32:19 PM
From: TimF  Read Replies (1) of 71588
 
Considering how little treasuries have been paying I'm not surprised that they are less desireable for China.

To the extent that reduced demand from China is part of an upcoming reduced demand from the rest of the world, than the rate will go back up, which should help increase demand again.

Beyond this effect, I would not be surprised to see China looking for a bit more diversity in its holdings, but it likely will remain an enormous holder of US federal government debt for some time.
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