China and the U.S. Treasury Bond Market - the Investment Threat Nobody's Talking About

By Crista Huff

Chinese ownership of U.S. Treasury bonds stood at 7.2% last October with total foreign ownership of Treasuries at 34.4%. "The worst case would materialize if the largest holders decided to sell their Treasury securities at the same time," writes Mike Patton at Forbes. Let’s talk about that. There are several reasons that China might sell U.S. Treasuries; and make no mistake - such an action could cause a big bond market correction, the likes of which we haven't seen since 1994. [more...]