A 50 subject one dollar note sheet is inspected after receiving a serial number and the U.S. Treasury and U.S. Federal Reserve seals at the U.S. Bureau of Engraving and Printing in Washington, D.C., U.S. (Photographer: Andrew Harrer/Bloomberg)  

China's Holdings of U.S. Treasuries Increase For a Third Month

(Bloomberg) -- China’s holdings of Treasury securities rose for a third month as the Asian nation took on more U.S. government debt amid the trade war between the world’s two biggest economies.

China’s holdings of notes, bills and bonds increased $4.2 billion to $1.13 trillion in February from the previous month, according to Treasury Department data released Monday in Washington. Japan remained the second-biggest holder, with $1.07 trillion, up $2.2 billion from January.

The U.S. and China are locked in negotiations to end the nine-month trade war that has roiled markets and threatened global growth. U.S. officials have said the deal would include a currency provision, though the details aren’t public.

The yuan was little changed against the dollar in February, after weakening near the closely watched level of 7 per dollar in late October. The yuan has appreciated 2.5 percent this year, the fifth-biggest rise among 24 emerging-market currencies tracked by Bloomberg.

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