So far, the rise of treasuries and the deflation trade have continued as expected. Many people continue to show extreme bearishness, and continue to talk about hyper-inflation and US defaulting...
(CNSNews) - China has dropped 97 percent of its holdings in U.S. Treasury bills, decreasing its ownership of the short-term U.S. government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the U.S. Treasury.Another very bullish news for treasuries is that China has sold 97% of their T-Bills holding. At first you might think I've lost it and that it is the opposite. But then, consider that they have sold this huge amount of treasuries, and that the market rose nonetheless. It shows a lot resiliency in the demand (thank you Ben Bernanke...) and also shows that there aren't many sellers left (except of course the treasury department themselves...).
Mainland Chinese holdings of U.S. Treasury bills are reported in column 9 of the Treasury report.