Year after China called on U.S. fiscal policy “irresponsible” Asian country shows signs of increasing confidence in the policies of U.S. President Barack Obama. This is evident from the data on the size of China’s position in U.S. government bonds. In March and April this year grew by 2.6 percent to 900.2 billion after last year between November and February that she was reduced to 6.5 per cent. So long series of negative has been reported a decade, official data showed. During the two months considered China increased its position in U.S. government bonds with 22.7 billion dollars. This is only part of the increase in foreign assets of the Asian country, which amounted to 205.2 billion dollars. Purchases in recent months have focused on the acquisition of long-term U.S. debt. Unlike now, in 2008 China increased mainly purchases of short-term bonds. For the 12 months to the end of April this year the increase of the position in U.S. bonds with a maturity of two years or more with 46 percent, data show. With the acquisition of long-term bonds China helps the U.S. to keep its funding costs at a record low. Analysts also support companies and consumers in the U.S. and accelerates the process of economic recovery.
This year U.S. government bonds registered its strongest performance since 2003, to June 18 as the return was 4.51 percent. As a reason for this state of Europe’s problems, directing capital to the U.S. free market.