China cut its holdings of US Treasuries by the most since January in September, as foreign investors pull back from the market even as the US government ramped up its debt issuance.
China is the largest foreign holder of US Treasuries but its purchases have flatlined in recent years, raising concerns that the declining demand could weigh on US government bond prices and push interest rates higher.
The country's total holdings fell $13.7bn to $1.15tn in September, according to data from the US Treasury released on Friday. The drop marks the fourth straight month of declines. The total amount of Treasuries held by foreign investors has followed a similar path to its largest holder, hovering slightly above $6tn since 2014. The total fell $63.3bn during September to $6.22tn.