China cuts US Treasury stockpile, dropping to No 3 spot among foreign holders
Britain takes China’s place as America’s second-biggest overseas creditor as Beijing pushes to diversify foreign exchange reserves
As foreign holdings rose for a third straight month to an all-time peak of US$9.05 trillion in March, China’s stockpile slid to US$765.4 billion, down US$18.9 billion from the previous month and ending an upswing in holdings in the January-February period, according to data released by the US Department of the Treasury on Friday.
The data also showed that China dropped to third place among foreign holders of US Treasuries. Britain took its spot as America’s second-biggest foreign creditor, with holdings surging by US$29 billion to US$779.3 billion in March.
Abrupt policy reversals last month, especially the 90-day pause on tariffs for most of Washington’s trading partners, helped calm investor nerves but yields remained elevated.
Moody’s Ratings stripped the US government of its top credit rating on Friday, sending yields on Treasury bonds higher.