According to a recent report, China’s holding of US Treasuries rose during April for the first time since in half a year; this news comes after China has reduced its holding in March by $9.2 billion from February.
During April China’s holdings of U.S. Treasuries longer-term notes and bonds inclined by 0.8% to a record $1.149 trillion, well above the $1.145 trillion China held back in December 2010.
There was a rise in global demand for U.S. stocks, bonds and other financial assets during April to a net buying of $30.6 billion compared with only $24 billion during March 2011.
This change of direction might continue if the Federal Reserve will not extend a stimulus plan after the current quantitative easing plan, in which the Federal Reserve printed $600 billion and purchased government bonds, will end this month. Furthermore, this may further strengthen the US dollar and consequently weaken major commodities including crude oil and gold prices.
Current Nymex crude oil price, short term futures (July 2011 delivery) is traded down by 0.65%, as its at $94.33 per barrel as of 07:46*.
The current Dated Brent spot oil price declines by $0.01/b and it is at $114.12 / barrel as of 07:56*.
Current gold price, short term futures (July 2011 delivery) is traded at $1,527.2 per t oz. a $2.7 decrease or 0.18%, as of 07:38*.
Euros to USD is currently traded down at 1.4172 a 0.2274% decrease as of 07:57*.
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