China reduces holdings of US Treasuries

WASHINGTON (Xinhua) – China reduced its holdings of United States (US) Treasuries to USD1.1035 trillion in August, the second consecutive month in which the holdings dropped, according to data released on Wednesday by the US Treasury Department.

China, currently the second largest foreign holder of US Treasuries, cut its holdings by USD6.8 billion in August, following a slight drop of USD2.2 billion in July. Japan surpassed China to become the largest foreign holder of US Treasuries in June, after boosting its holdings by USD21.9 billion in the month. In August, Japan’s holdings of US Treasuries increased by USD43.9 billion to reach USD1.1747 trillion.

Combined, the two Asian countries held about one third of the total foreign holdings of US Treasuries in August, the department’s data showed.

Overall, foreign holders of US Treasuries had USD6.8575 trillion of government debt in August, up USD225.6 billion from the previous month.