China’s Holdings of U.S. Treasuries Drop by Most Since 2011
- PBOC is burning through currency reserves to support the yuan
- No. 1 holder Japan also reduced Treasuries in its portfolio
Why Money Keeps Flowing Out of China
This article is for subscribers only.
China’s holdings of U.S. Treasuries declined in November for a sixth straight month, as the world’s second-largest economy uses its foreign-exchange reserves to support the yuan. Japan’s holdings also dropped but the country kept its spot as America’s largest foreign creditor.
A monthly Treasury Department report released in Washington on Wednesday showed China held $1.05 trillion in U.S. government bonds, notes and bills in November, a drop of $66.4 billion from the prior month that was the steepest since December 2011. Japan’s portfolio decreased for fourth consecutive month, falling by $23.3 billion to $1.11 trillion, according to the data.