Bloomberg reports that China reduced its holdings of U.S. Treasury bonds by $2.4 billion in May to $768.3 billion. As the second largest foreign holder of U.S. Treasury bonds, China’s holdings have been below $1 trillion since April 2022, and have been decreasing steadily.
In January 2024, China reduced its holdings of U.S. Treasury bonds by $18.6 billion. This was followed by further reductions of $22.7 billion and $7.6 billion in February and March, respectively.
Japan, the largest holder of U.S. debt, also reduced its holdings of U.S. Treasury bonds by $22 billion in May, with total holdings being $1.1283 trillion.
