China further reduces US Treasury holdings in June
16 Aug 2010
Washington: China reduced its holdings of US Treasury debt for a second straight month in June even as both nations continue with their posturing on the communist nation's revaluation of its currency.
Data also indicated that both Japan and Britain raised their holdings of US securities in the same period.
As for China its holdings dipped another $24 billion to $843.7 billion, a decline of 2.7 per cent, the US Treasury Department said Monday in a monthly report on debt holdings.
It also said that total foreign holding of Treasury securities was up $45.6 billion to a total of $4 trillion. This marks an increase of 1.2 per cent.
The $24 billion fall in the levels of Chinese holdings in June follows a $32.5 billion drop in May. China's holdings in US Treasuries hit an all time high in April 2010 with a total of $900.2 billion. China is the largest foreign holder of Treasury securities.
The US government is trying to cope with record levels of debt and the sales of securities are the primary means for financing this debt.
