‘China’s caution’ reflected in shedding of some US Treasury holdings as stimulus measures raise inflation risk

• US Treasury data shows China’s holdings of US debt dropped by US$3.8 billion in March, month on month, to US$1.1 trillion – the first decline in months
• Yield of benchmark 10-year US Treasury securities jumped to 1.7 per cent in March, up from 1.426 per cent on March 1 and 0.917 per cent in early January