Economics

China Cuts U.S. Treasury Holdings for Third Straight Month

  • The Asian nation reduced ownership by $5.9 bln to $1.165 tln
  • Saudi Arabia increased its holdings to a record $170 bln

China has again cut Treasury holdings, while local governments have accumulated hidden debt. Tom Mackenzie reports.

(Source: Bloomberg)
Lock
This article is for subscribers only.

China’s holdings of U.S. Treasuries fell for a third consecutive month in August as the Asian nation struggles to prevent the yuan from weakening amid trade tensions with America.

China’s ownership of U.S. bonds, bills and notes was $1.165 trillion, down from $1.171 trillion in July, according to data released by the Treasury Department on Tuesday. Japan, which is the largest foreign owner of Treasuries after China, decreased its holdings to $1.03 trillion from $1.036 trillion a month earlier. Saudi Arabia boosted its ownership by $2.7 billion to a record $169.5 billion.