China’s holdings of U.S. Treasuries declined for the third straight month, the longest stretch of reductions since 2011, a government report released today in Washington showed.
The country held $1.26 trillion in U.S. debt as of April, down $8.9 billion from the previous month, the Treasury Department said in a monthly report. China is the largest foreign holder of Treasuries, followed by Japan.
The decline may be related to China’s foreign-exchange reserve levels, said Aaron Kohli, an interest-rate strategist at BNP Paribas in New York. China’s accumulation of reserves will diminish after hitting a record in the first quarter, a Chinese government official said last week.
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