China slightly trimmed its holding of US Treasury bonds for the second straight month in July, continuing a downward spiral amid growing risks of greenback assets.
China cut its US Treasury bond holdings by $1 billion in July to $1.07 trillion, US Treasury Department data showed Wednesday.
As of July, China remained the second-largest foreign holder of US government debt, while Japan remained top with its US debt holdings surging $31.5 billion to $1.29 trillion. Total foreign holdings of US Treasury debt grew by $48.2 billion month-on-month to $7.09 trillion in July.
China also sold US Treasury bonds in March and April this year.
“As the yields of US Treasury bonds continue to drop, it’s more appropriate for China to reduce holdings of the greenback asset,” Tian Yun, vice director of the Beijing Economic Operation Association, told the Global Times on Thursday.