China cuts US Treasury holdings to lowest in nearly 12 years amid volatility in the US
China trimmed its holdings of US Treasury bonds for a fourth straight month in March by more than $15.2 billion, taking the total holdings to the lowest level since June 2010, in what experts said was a move to reduce losses as Treasury bond prices slid and help diversify China's foreign exchange holdings in the long run.
Compared with other foreign holders of US debts, China's reduction was moderate. In comparison, Japan trimmed $73.9 billion of US Treasury bonds in March, the largest drop among foreign holders, which experts said is a desperate move to shore up the yen's decline against the US dollar.