China cut Treasury holdings by 5%
Updated: 2012-02-16 13:47
By Wei Tian (chinadaily.com.cn)
BEIJING — China's holdings of United States Treasury bonds stood at $1.10 trillion as of Dec 2011, $3.19 billion down from the previous month, data from the US Treasury Department showed on Wednesday.
This marked the third consecutive month for China, the largest holder of US Treasury securities, reduced the amount of US Treasury bonds in the portfolio of its $3.18 trillion foreign exchange reserves. It is also the lowest level since June 2010.
Overall, the country has trimmed 5 percent of its holdings over the entire year of 2011. It held $1.16 trillion in Dec 2010.
Japan, the second largest holder, continued raising its investment in US Treasuries for the sixth month in a row, taking it to $1.04 trillion, only $60 billion less than that of China.