How vulnerable are Treasuries to waning Chinese demand?

We don’t see the possibility of China running down its foreign exchange reserves in attempts to support the renminbi as a significant risk to US Treasuries. The links between Chinese demand for Treasuries and their yields are not particularly strong and, in any case, easing pressure on the renminbi in the months ahead should limit the need for further FX sales by the People’s Bank.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.