The US Treasury revealed this week that China’s holdings in Treasury bonds rose for the first time in 8 months, while Japan reduced its share of US public debt.
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China increases holdings in US Treasuries after an 8-month decline
US Treasury data showed this week that China’s treasury holdings rose in July for the first time in 8 months, as Japan reduced its share of US public debt.
US Treasury holdings in China climbed to $ 970 billion in July, from $ 967.8 billion in June, the lowest monthly level since May 2010, when it was $ 843.7 billion, according to Reuters.
Data from recent months revealed that China’s holdings of US debt fell below a trillion dollars for the first time in 12 years due to rising interest rates that made Treasury bills less attractive.
On the other hand, Japan reduced its Treasury holdings to $ 1.234 trillion in July from $ 1.236 trillion the previous month, but Japan remains the largest holder of US government bonds outside the United States.
The decline in Japan’s holdings was somewhat in line with movements in the currency market and the yen consolidated against the dollar in July, ending the month at 131.6 yen per dollar, up from 135.22 yen. at first.
Valley The yen fell sharply against the dollar earlier this year To increase the chances of Japan entering the market in support of the local currency, and since the beginning of 2022 the yen has fallen by 19.5% against the dollar.
Overall, foreign holdings of Treasury securities rose to $ 7.501 trillion in July from $ 7.430 trillion in June.
In other asset classes, foreigners sold US securities in July for the seventh consecutive month, worth $ 60.32 billion, compared with outflows of $ 25.36 billion in June, and the July outflow was the largest since March.
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