TIC Data Show No Sign Of China Dumping U.S. Debt

Forex News: The diversification talk seems to be ahead of itself if the TIC data are any guide. China and Japan, the two largest holders of Tsys, haven't been net dumping of dollar-denominated assets in recent months, says Win Thin, senior currency strategist at Brown Brothers Harriman & Co. in a research note. "In fact we have seen a steady increase in total dollar holdings by these two important countries over the past year," he says. China's net holdings of US Treasury securities rose $4.6 bln in May, with short-term holding falling $6.9 bln while long-term holdings rising $11.5 bln. China's total US dollar holdings have increased $136 bln since June 2007 to $1.047 trln, Thin says, citing TIC data.