Watch China's Next Move
By Eugene Tang and Tian Ying
March 13 (Bloomberg) -- China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe, Premier
Wen Jiabao said.
“We have lent a huge amount of money to the United States,” Wen said today at a press conference in Beijing that marked the closure of the annual National People’s Congress meeting. “Of course we are concerned about the safety of our assets. To be honest, I am a little bit worried. I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.”
China should seek to “fend off risks” as it diversifies its $1.95 trillion in foreign-exchange reserves and will safeguard its own interests, according to Wen. He requested that Chinese investors held $696 billion of U.S.
Treasuries as of Dec. 31, an increase of 46 percent from the prior year.

Commentary: Do you think the Chinese are "worried" without cause? Watch the movement of America's largest creditor to diversify away from dollars and into commodities or commodity based currencies.

How long until we see a Treasury Bond auction failure and subsequent increase in interest rates?