China dumping American debt Treasury data

RT.com
19 Jul 2022, 20:13 GMT+10

Beijing's holdings of US securities have dropped by nearly $100 billion in six months

China's holdings of US treasury securities dropped below $1 trillion in May for the first time in more than a decade, information released by the US Department of the Treasury shows. Official data is regularly published with a two-month delay.

China, the second largest foreign holder of US government debt, has reduced its holdings for six consecutive months from $1.08 trillion last November to $980.8 billion in May. That's a decline of nearly $100 billion, or 9%. The last time China held less than $1 trillion of US treasury securities was in May 2010 ($843.7 billion).

Japan, the largest foreign holder of US government debt, has also decreased its holdings recently. In the six months from November to May, it dropped by nearly $116 billion to $1.212 trillion.

The total US national debt was just above $30.4 trillion as of last month. Washington has been struggling to contain skyrocketing inflation that hit a 41-year high at 9.1% in June. The US Federal Reserve hiked its benchmark interest rate by 0.75 of a percentage point in June, triggering warnings of a possible recession. Another increase could be introduced in an upcoming meeting next week.

According to CNBC, rising interest rates have made US treasury securities potentially less attractive, but the decline in China's share could also be attributed to Beijing working to diversify its foreign debt portfolio.

For more stories on economy & finance visit RT's business section

(RT.com)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Malaysia Sun.

More Information

27 ℃

Fair in Subang

Southeast Asia

Section

Bangladesh to send 600,000800,000 migrant workers to Malaysia in six moths

KUALA LUMPUR, Malaysia - After almost four years, the Bangladesh High Commission in Malaysia on Tuesday welcomed the first group ...

Pakistan wins second gold at Commonwealth Games in Birmingham

BIRMINGHAM, UK - Arshad Nadeem was hailed by the entire country late Sunday for his outstanding performance in the Commonwealth ...

Japanese Kubota, fifth foreign journalist, detained in Myanmar since coup

YANGON, Myanmar - According to the ruling military administration, a Japanese journalist detained in Myanmar has been charged with violating ...

Bangladesh collects biometric data of 800,000 refugees to send to Myanmar

DHAKA, Bangladesh - On Sunday, China pledged to assist Bangladesh in repatriating thousands of Rohingya refugees to Myanmar.Bangladesh Foreign Minister ...

Saudi Arabia, UAE guarantee 4bn dollar loan to Pakistan to get IMF tranche

ABU DHABI, UAE - The UAE plans to invest $1 billion in Pakistani companies across multiple sectors, according to the ...

Nepal looking at the Taiwan issue closely, supporting one-China policy

KATHMANDU, Nepal - Nepal says it is closely monitoring the recent Taiwan issue and remains committed to the one-China policy.Sewa ...

Business

Section