August 18, 2009

China’s U.S. Treasury holdings cut in June

China, the largest U.S. creditor, reduced its June U.S. Treasury holdings by $25.1 billion or 3.1 percent to $776.4 billion from May's $801.5 billion.

Citing U.S. Treasury Department figures, China Daily reported Tuesday the 3.1 percent was the largest percentage cut in nine years.

However, the newspaper said the June holdings were still larger than April's $763.5 billion and $767.9 billion in March.

Overall, however, demand for U.S. Treasuries grew in June.

Japan, the second largest holder of U.S. Treasuries, increased its holdings to $711.8 billion, up $34.6 billion from May. Britain, the third largest holder, held $214 billion in June, up $50.2 billion from May.