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00:00A CURIOUS SITUATION GIVEN THE FACT THAT CHINA HAS BEEN BUYING AT GANG BUSTER PACES OVER THE PAST THREE YEARS TO LIMIT GAINS IN THE CURRENCY. THE SCENARIO IS DIFFERENT NOW. CHINA IS STILL THE BIGGEST FOREIGN CREDITOR, $1.4 TRILLION IN HOLDINGS. AMERICANS AT 1.6 CHINESE HAVE REDUCED THEIR HOLDINGS BY ABOUT $200 BILLION. AS I SAID, ONE DOLLAR TRILLION NOW IS HELD BY DOMESTIC U.S. FUNDS. IT COMES OF COURSE AS WE AWAIT THE FED INTEREST RATE MOVES AND AS CHINA WORKS TO COUNTER PROBLEMS AT HOME. THEY NEED THAT MONEY TO DEAL WITH THEIR OWN ECONOMIC CHALLENGES. A VERY CURIOUS REVERSAL HERE. THESE BIG PURCHASES BY CHINA IN RECENT YEARS HAVE HELPED TO KEEP A LID ON U.S. FINANCING. FOR ALL THE POLITICS INVOLVED, IS STILL A VERY REAL IMPACT TO BOTH SIDES THEY CAN BE GRATEFUL TO THE OTHER. >> SO, THERE IS DOMESTIC MANNED, BUT WHAT IS DRIVING THE CHINESE DECISION TO SELL? >> THEY NO LONGER NECESSARILY NEED TO KEEP A LID ON THE CURRENCY LIMIT GAINS. CHINA DEALING WITH ITS OWN SLOW DOWN AS WE TALK ABOUT THAT EACH AND EVERY DAY. CHINA NEEDS TO RAISE MONEY TO SUPPORT THEIR OWN MARKETS. LET'S NOT FORGET THE DRAMATIC MARKET PULLBACK THAT WE SAW IN SHANGHAI THAT RIPPLED THROUGH HONG KONG IN THE WORLD. THE CHINESE SPEND CASH TO BASICALLY SHORE UP THE DOMESTIC MARKET AND THE PROGRAMS THAT THEY ARE PUTTING INTO THE ECONOMY. IF THIS CONTINUES IT WILL BE THE FIRST TIME THE CHINA HAS PULLED BACK ON AN ANNUAL BASIS FROM BUYING U.S. TREASURY'S. ANGIE: THANKS FOR THAT. THE US REALLY A TREASURY SURGING THIS MORNING AS THEY RESPOND TO THE PLAN TO PURCHASE THE U.S. IN

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American Demand for Its Own Debt Skyrockets

China has hit the sell button when it comes to U.S. treasuries, but the alarm bells are not ringing yet, because new data compiled by Bloomberg reveal Americans are staying local and buying their nation's debt, even as China backs away. Bloomberg's Zeb Eckert reports on "First Up." (Source: Bloomberg)

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