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U.S. Treasury’s International Capital Statistics Update
Tables and comments detailing foreign investment through May 31, 2007 with data released on July 17, 2007. China has reduced its holdings of U.S. Treasuries two months in a row. This is far from creating a trend, but if it does in fact continue, it will be important to keep an eye on Chinese net purchases of the other U.S. assets (Corporates, Agencies and Equities) to determine if they are selling U.S. assets in general or simply shifting their money into higher-yielding assets.