China’s holdings of US Treasury bonds and notes for the month of April fell to the lowest level since May 2017, data from the US Treasury department showed, highlighting an uncertain outlook on a trade deal between Beijing and Washington.
Chinese holdings of US government debt declined for a second straight month, to US$1.113 trillion in April, from US$1.120 trillion the previous month, Reuters reports.
Even so, the world’s second-largest economy remains the largest non-US holder of Treasuries, the news agency said.
The data showed that Japan, the second-largest non-US holder of Treasuries, also reduced its holdings of Treasuries in April to US$1.064 trillion, from US$1.078 trillion the previous month.
Overall, foreign holdings of Treasuries dropped to US$6.433 trillion in April, from US$6.473 trillion in March.
Foreign flows of US Treasuries, meanwhile, showed an inflow of US$16.949 billion in April, from net selling of US$12.526 billion in March. Offshore private investors purchased US$45.366 billion of Treasuries during the month, from only US$91 million previously.
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