China’s holdings of U.S. Treasuries fell in July by $30.4 billion, the most since December 2013, as the nation sought to defend the yuan amid a slowing economy.
The biggest foreign holder of Treasuries saw its portfolio decline to $1.24 trillion, according to Treasury Department data released Wednesday in Washington. Japan’s holdings of Treasuries increased by about $400 million to $1.2 trillion.
China’s leaders have put their foreign-exchange reserves to use toward propping up the yuan as hundreds of billions of dollars in capital flow out of the nation and signs of a deepening economic slowdown abound. The nation’s portfolio of foreign assets has fallen $286 billion this year to $3.56 trillion as of August, according to the government.
The Treasury’s report, which also contains data on international capital flows, showed net foreign purchases of long-term securities of $7.7 billion in July. It showed a total cross-border inflow, including short-term securities such as Treasury bills and stock swaps, of $141.9 billion.