Why our country for the first year to reduce U.S. Treasury bonds

As of the end of April this year, our Treasury holdings were $763.5 billion trillion, less than $767.9 billion at the end of March.　　This means that in April our country reduced its holdings of about $4.4 billion trillion in US Treasuries. It is the first time in more than a year that China has reduced its holdings of U.S. Treasuries, according to the US Treasury.　　Analysts say the reduction itself reflects the cautious mentality of governments or institutions to hold large amounts of US Treasuries in the context of a weaker dollar. "Reduction is not necessarily an official act, but also may be the organization in the reduction." Compared with the current $ more than 700 billion trillion U.S. Treasury debt, more than 4 billion dollars is a small number, can be seen as normal fluctuations.　　"The executive director of the China Institute of International Economic Relations, financial expert Tan Yaling said. "Because of the small amount of reduction, it is not yet possible to determine whether it has become a trend, but it is certain that the reduction behavior reflects the government or institutions of the cautious mentality of holding US Treasuries." Because with the depreciation of the dollar, holding large amounts of US Treasury bonds is undoubtedly risky.　　"said Zhang Bin, deputy director of the international financial room of the Cass. According to the introduction, the U.S. government bonds in the United States government credit and government revenue as collateral, the credit rating is relatively high. Historically, Japan, after accumulating huge foreign exchange reserves, became America's largest creditor nation by buying a lot of US Treasuries. However, Japan, the largest bond nation of U.S. Treasuries, has been gradually reducing its holdings in recent years.　　By September 2008, according to data disclosed by the US Treasury's website, Japan held US Treasuries at $ more than 570 billion trillion when it held US Treasuries at $585 billion trillion and became the biggest creditor of US Treasuries. Becoming the biggest creditor of US Treasuries during the recession means there may be some extra risk. Since March this year, with the U.S. government in the long-term debt crisis, the United States through the implementation of quantitative easing monetary policy, the printing of the U.S. dollar in disguise, so that the current U.S. Treasury debt credit is subject to great market challenges.　　In the past one months, the dollar index has plunged more than 10%, and investors ' confidence in the dollar and dollar assets has been severely hit. America's stimulus package is sliding the dollar into a devalued channel. If the dollar is devalued, whether China's $1.95 trillion trillion foreign exchange reserves are mired in shrinkage has become a topic that the market cannot avoid. In response, Zheng, a financial scholar at the Chinese Academy of Social Sciences, has made a figurative analogy: when China holds $700 billion trillion in U.S. Treasuries, it can buy 700 billion hamburgers, but then if there is a serious inflation in the United States, hamburgers become 2 U.S. dollars, temporarily do not consider floating surplus or floating losses,　　Then China can only buy 350 billion hamburgers.　　In fact, not only China, but also many countries and regions, including Japan, Russia and Brazil, have reduced the amount of U.S. Treasuries in April. Thus, reducing reliance on the dollar is becoming a strategic choice for some countries. But analysts also point out that the problem now facing these countries isWhether there will be better investment opportunities in addition to US Treasuries. "Now that the world is debating and questioning the value of dollar and dollar assets, we can choose the foreign exchange portfolio that suits our country based on the performance of the various assets in the market." But in the current situation, Treasury bonds are still a good investment channel.　　"Tan Yaling said. However, compared to the reduction of the behavior itself, China needs to find "radical" strategy to solve the problem of devaluation of the dollar. Bank of China researcher Wang Yuanlong that the internationalization of the renminbi can reduce China's demand for the US dollar, reduce the dollar ratio in the balance of payments surplus, and further ease the external imbalance pressure on the Chinese economy. (according to Xinhua news Agency)