China's US Treasury Holdings Drop to $651.1 Billion in April, Lowest in 18 Years

According to the latest data released by the US Treasury Department on the 18th, China's holdings of US government debt fell to $651.1 billion in April, marking the lowest level since September 2008. This represents a decrease of $1.2 billion from March, making it the third consecutive month that China has reduced its holdings.

A report by the South China Morning Post on the 19th suggests that China is continuing to diversify its foreign exchange reserves amid geopolitical uncertainties in the Middle East and growing concerns regarding the independence of the US Federal Reserve.

The Treasury International Capital (TIC) report indicates that foreign investors purchased $103 billion in long-term US securities in April, with overall holdings of US Treasury bonds increasing by $3.9 billion. This follows a significant decline of over $138 billion in foreign holdings during March.

Among the top foreign holders of US debt, Japan increased its holdings by $18.3 billion to $1.21 trillion, while the UK increased its stake by $10.6 billion to $937.5 billion. Despite the modest decline to $651.1 billion, China remains the third-largest foreign holder of US Treasury bonds.