China U.S. Treasury Holdings March 2012

Time for a China U.S. treasury holdings update. Apparently the February release of China's holdings of U.S. bonds was revised downward from $US 1.17 trillion to $US 1.155 trillion. But in March, China recorded the highest amount of treasury holdings, namely $US 1.17 trillion (Chart 1).

So China isn't only buying record amounts of gold, but at the same time is continuing to buy U.S. treasuries. Where on earth does China get all this money from... Right, because of production and savings.

Chart 1: China U.S. treasury holdings (billion USD)