{
  "id": 5960946,
  "title": "Chinese banks purchasing Treasuries after wooing dollar deposits, sources say",
  "url": "https://urgent.news/2026/09/06/chinese-banks-purchasing-treasuries-after-wooing-dollar-deposits",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-06T11:04:48.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/chinese-banks-purchasing-treasuries-after-wooing-dollar-deposits-sources-say"
  },
  "original_language": "en",
  "account": "Chinese banks have been acquiring US Treasuries since raising dollar deposit rates, according to sources familiar with the situation. This shift in strategy could help curb the yuan's appreciation and comes amid a surge in US yields. The purchases have not been previously disclosed, and their magnitude remains unknown. Chinese commercial banks view US Treasuries as an appealing investment due to the low yields on Chinese government bonds and regulatory scrutiny of domestic bond market investments. While US banks cap deposit rates for most accounts at 2.8%, those with balances exceeding US$50,000 can negotiate rates above 3%, with some smaller banks offering close to 4%. The 10-year US Treasury yield has climbed over 30 basis points since June, driven by inflation, US debt concerns, and improved growth prospects. Banks are attracted to dollar deposits to purchase Treasuries, with the 10-year yield surging to 4.76%. Banks are hesitant to convert yuan to dollars due to recent regulatory scrutiny of offshore investments. Foreign exchange deposits in China have surged to US$1.18 trillion in end-July, up 17.9% year-over-year. Higher dollar deposit rates in China have made holding dollars more appealing, while the yuan is among the strongest performing currencies against the dollar, gaining nearly 9% since the beginning of last year. China's bond market has also been the world's strongest during the Middle East conflict. Despite the recent purchases, China's overall holdings of US Treasuries remain low, dropping 13% in June to US$633.4 billion, the lowest since September 2008.",
  "summary": "CHINESE banks have been buying US Treasuries over the past few months after lifting dollar deposit rates, according to people familiar with...",
  "key_points": [
    "Chinese banks raising dollar deposit rates to purchase Treasuries",
    "US 10-year Treasury yield surges to 4.76% amid inflation and debt concerns",
    "China's foreign exchange deposits surge to $1.18 trillion in end-July"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}