According to the data, both Japan and China have reduced their holdings of United States Treasuries to multi-year lows.

Japan and China reduce U.S. Treasury holdings to multi-year lows

According to the data, both Japan and China have reduced their holdings of United States Treasuries to multi-year lows.


According to data that was made public by the United States Department of the Treasury on Monday, Chinese mainland holdings of US treasury securities reached a 12-year low in May 2022, falling to $980.8 billion. This marked the first time in the past 12 years since May 2010 that the figure had fallen below $1 trillion.


As the second largest holder of US government debt, the Chinese mainland has sold off a portion of its holdings for the past six consecutive months, bringing the total amount down from $1.08 trillion in November 2021 to $980.8 billion in May 2022.
The last time it had less than $1 trillion in US treasury debt was in May of 2010, when it had $843.7 billion.


Japan is still the largest holder of US debt, but the country’s total holdings fell from $1.232 trillion in March to $1.212 trillion in May. This is a decrease of a few hundred billion dollars.

Moving Markets

The economy of the United States is currently struggling under the weight of soaring prices and the looming threat of a recession.


The Consumer Price Index (CPI) in the United States reached a 41-year high of 9.1 percent in June, fueling market speculation that the United States Federal Reserve may maintain its hawkish stance and further increase the United States interest rate by 0.75 percentage points or even more at the upcoming meeting in late July.


The aggregate value of US treasury holdings that are held by holders located outside of the United States has seen a decline for the past three months running, falling from $7.71 trillion in February to $7.42 trillion in May.

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