China Sells U.S. Treasuries to Support Yuan
 

China has cut its holdings of U.S. Treasuries this month to raise dollars needed to support the yuan in the wake of a shock devaluation two weeks ago, according to people familiar with the matter.

Channels for such transactions include China selling directly, as well as through agents in Belgium and Switzerland, said one of the people, who declined to be identified as the information isn?t public. China has communicated with U.S. authorities about the sales, said another person. They didn?t reveal the size of the disposals.

The People?s Bank of China has been offloading dollars and buying yuan to support the exchange rate, a policy that?s contributed to a $315 billion drop in its foreign-exchange reserves over the last 12 months. The $3.65 trillion stockpile will fall by some $40 billion a month in the remainder of 2015 because of the intervention, according to the median estimate in a Bloomberg survey.

Continued China Sells U.S. Treasuries to SupportÂhaYuan - Bloomberg Business

China partly blames the US for what is going on over there, so they're now saying if you cause volatility in our markets, we're selling some of our treasuries.... better read on zerohedge:

http://www.zerohedge.com/news/2015-0...rns-washington

The annual deficits are 1 trillion now. That is money that no one has, and never will, being spent. We do this every year now and no hyperinflation. They can buy all of China's treasuries and it won't cause hyperinflation. Hyperinflation is going to come but not just yet.

China dumping Treasurys? Here's what you must know

And nothing happened because any mass selling by China would destroy the Yuan's valuation and the Chinese economy.

Hey look at the monkey!