China Selling Treasuries.

Data out from the Treasury this past Monday stated that China owned 763.5 billion dollars in US securities in April, down from 767.9 billion dollars in March.

It was the first month since June 2008 that Beijing failed to purchase more US Treasuries.

The decision to do so by China to reduce its US Treasury holdings is suggestive that Beijing is voicing their concerns about the US's attitude towards its own economic woes, Chinese economists were quoted as saying in state media Yesterday.

The remarks, coming after US data showed a modest decline in Chinese investments in US Government bonds, were in contrast to an earlier statement in Beijing which had said the recent sell-off was a routine transaction.

China's foreign ministry said Tuesday that its purchases of US Treasuries remained based on "security, liquidity and value preservation".

For Zhao Xijun, deputy director of the Finance and Securities Research Institute of People's University, China may have reduced its holding of US Treasuries simply because it needed the money.

Zhao said the sell-off could have been in order to pay for its own economic stimulus package.

"The reduction was a result of composite factors, such as the investment need and the market change," Zhao told Global Times.