U.S. lets China bypass Wall Street for Treasury orders


U.S. lets China bypass Wall Street for Treasury orders

Reuters

May 21, 2012

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 relationship means the People’s Bank of China buys U.S. debt using a different method than any other central bank in the world.

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. Those dealers then bid on their behalf at Treasury auctions.

China, which holds $1.17 trillion in U.S. Treasuries, still buys some Treasuries through primary dealers, but since June 2011, that route hasn’t been necessary.

The documents viewed by Reuters show the U.S. Treasury Department has given the People’s Bank of China a direct computer link to its auction system, which the Chinese first used to buy two-year notes in late June 2011.

Click Here to Read More

Advertisements

About partisanrangershow

Freedom fighter
This entry was posted in Economics, Hot Topics. Bookmark the permalink.

One Response to U.S. lets China bypass Wall Street for Treasury orders

  1. gideon says:

    For Treasury Sales too????? Soon we’ll see all those vacant homes being occupied by Chinese. Now that they own GM, WALMART and you name it. This is the real “transfer of wealth”. We used to be just surrounded. Soon we’ll be invaded /occupied. They’ve sold us out, nothing could be more obvious.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s