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Thread: Should China continue to buy US treasury bonds?
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[quote=YVONNE,333797]China has accumlated a large amount of foreign exchange reserves. What is China going to do with such a great deal of money? Some bank managers suggest that China should continue to buy US treasury bonds because China hasn't found a more secure channel to do investments with its foreign exchange reserves except investing in US treasury bonds. Do you agree? Actually, the PE ratio of US treasury bonds has decreased greatly due to the financial crisis. The other reason is that too many investors have invested in US treasury bonds. Are there any other choices if China decides not to buy US treasury bonds?[/quote]
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