China’s holdings of US Treasuries fell for a sixth straight month in November as the world’s second-largest economy continued to use its reserves to support the yuan.
Data released in Washington Wednesday showed China held US$1.05 trillion in US government bonds in November, a drop of US$66.4 billion from the prior month that marked the steepest decline since December 2011, Bloomberg reports.
According to figures from the US Treasury Department, China has dumped about US$270 billion of US government debt since its holdings peaked at US$1.32 trillion in 2013.
It came as authorities in Beijing tapped into the reserves to prop up the yuan and stem capital outflows.
In November, Japan also saw its US debt holdings decline — by US$23.3 billion to US$1.11 trillion — but the country retained its spot as America’s largest foreign creditor for the second straight month.
Overall, foreign holdings of US Treasury debt totaled US$5.94 trillion, a drop of US$96.1 billion from the October level. It marked the lowest such level since 2014, according to Bloomberg.
The US Treasury report, which also contained data on international capital flows, showed net foreign buying of long-term securities totaling US$30.8 billion in November after a revised inflow of US$9.3 billion a month earlier.
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