Chinese Banks Buy US Treasuries
Chinese commercial banks have started purchasing United States Treasuries after raising dollar deposit rates to attract capital. The strategy helps banks cope with low domestic yields while managing rising foreign exchange liquidity and currency pressures.
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Commercial banks in China have been purchasing U.S. Treasuries over recent months following rate hikes on dollar deposits, according to people familiar with the matter. The unannounced strategy shift aims to slow gains in the USD/CNH as domestic yields hover near historic lows.
