China's holdings of U.S. treasuries fall to 6-month low in Jan.

Updated 2018-03-16 14:09:01 Xinhua

China's holdings of U.S. Treasury securities fell to a six-month low in January, according to data released by the U.S. Treasury Department on Thursday.

China's holdings of U.S. treasuries fell to 1.1682 trillion U.S. dollars in January, down from 1.1849 trillion dollars in December, reaching the lowest level since July, the data showed.

But China remains the largest foreign holder of U.S. treasuries, followed by Japan, whose holdings went up 4.3 billion dollars to 1.0658 trillion dollars in January.

By the end of January, overall foreign holdings of U.S. Treasury securities slightly dropped to 6.2604 trillion dollars from 6.2849 trillion dollars in the previous month.

Analysts say higher U.S. inflation and interest rates have made holding U.S. treasuries more expensive, reducing overseas demand for U.S. treasuries in recent months.

Benchmark U.S. 10-year treasury yields rose to 2.83 percent on Thursday from 2.4 percent by the end of last year, according to Bloomberg data.

As President Donald Trump is taking a tough stance against China on trade, investors are keeping a close eye on China's holdings of U.S. treasuries. But market analysts say China is unlikely to use dumping U.S. treasuries as a tool for retaliation, as it would come at a heavy cost to both countries.

Like other investment moves, China's purchase of U.S. treasuries is a market-based behavior and is subject to professional management based on market conditions and investment targets, China's top forex regulator said in January.

The Chinese forex managers are responsible investors whose investments have helped stabilize the international financial market and the value preservation and growth of China's forex reserves, said the State Administration of Foreign Exchange.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58April 23 2019 20:56:16

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16April 23 2019 20:56:16

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18April 23 2019 20:56:16

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords