"We also only came to know about this information through these media reports", a SAFE spokesperson was quoted on the agency's website as telling a reporter.
"China has always managed its forex reserves investments in accordance with the principle of diversification, to ensure the overall safety of FX assets, to maintain and increase their value", SAFE said.
On the USA economic front, the Labor Department released a report showing another unexpected increase in first-time claims for US unemployment benefits.
The modest increase came as a surprise to economists, who had expected initial jobless claims to edge down to 245,000.
The Labor Department said import prices inched up by 0.1 percent in December after climbing by an upwardly revised 0.8 percent in November.
The report also showed an unexpected decrease in export prices, which edged down by 0.1 percent in December after rising by 0.5 percent in November.
China says report on USA treasuries may cite `wrong source'
"The futures are indicating a nasty opening as climbing yields awaken investors to a possible meltdown in the government bond market", Peter Cardillo, chief market economist at First Standard Financial in NY, wrote in a client note. Furthermore, the 10-year yield has failed to take its high from the first quarter of 2017, and the 30-year has remained even more contained in its moves. Core prices had also been expected to tick up by 0.2 percent.
Natural gas stocks showed a significant move to the downside over the course of the trading session, dragging the NYSE Arca Natural Gas Index down by 1.4 percent.
Steel, trucking, housing and computer hardware stocks also saw considerable strength, moving higher along with most of the other major sectors. While the UK's FTSE 100 Index edged up by 0.2%, the French CAC 40 Index dipped by 0.3% and the German DAX Index slid by 0.6%.
Volatility in the Treasury market has sunk to a multidecade low, and that could have sweeping implications for the bond market this year.
U.S. Treasury Notes: The weekly T-Note futures chart shows major technical damage has already been inflicted, as prices this week fell to a 6.5-year low. A news report that China was looking at such a move had helped depress demand for Treasurys early Wednesday, but Treasurys rallied later in the day after an auction of 10-year Treasurys drew strong demand.
Economic data may attract attention on Friday, with traders likely to keep a close eye on reports on retail sales and consumer price inflation.
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