China Given Access to Buy US Debt from Treasury

China can now bypass Wall Street when buying US government debt and go straight to the US Treasury, Reuters reported Monday, according to documents that it viewed.

China was given a computer link to the US Treasury Department's auction system for purchases of US government debt.

The agreement is the US Treasury's first-ever direct relationship with a foreign government, said Reuters.

China can buy debt without bidding through primary dealers, but has to go through the market to sell debt, Reuters reported.

The change was not announced publicly or in any message to primary dealers.

China remains the largest foreign holder of United States Treasury securities after boosting its stockpile by US$14.7 billion to US$1.17 trillion in March, the US Treasury Department reported last Tuesday.