China can now buy U.S. debt straight from Treasury

Times 24/7


China can now buy U.S. debt straight from Treasury

The U.S. Treasury has granted China a direct bidding link in order to keep its largest purchaser of debt happy. China holds $1.17 trillion in U.S. Treasuries. Photo Credit:AP

China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury’s first-ever direct relationship with a foreign government, according to documents viewed by Reuters. …

The other central banks, including the Bank of Japan, which has a large appetite for Treasuries, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. …

Documents dealing with China’s new status as a direct bidder again demonstrate the Treasury’s desire for secrecy — in terms of Wall Street and its new direct bidding customer.


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Read the original article at Reuters

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