appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Sylvia Ma

Xinyi Wu

China cut its holdings of US Treasuries to a nearly 18-year low in June, as Beijing continued to diversify its foreign exchange reserves amid heightened geopolitical tensions and growing uncertainty over the policy outlook in the United States.
Holdings fell to US$633.4 billion in June from US$659.3 billion in May, data released by the Treasury Department of the United States showed on Monday. The amount in June marked the lowest level since September 2008, when holdings fell to US$618.2 billion according to Chinese financial data provider Wind.
Meanwhile, overall foreign holdings of US Treasuries dropped to US$9.299 trillion in June from US$9.371 trillion in May.
US-Iran hostilities reignited in June before a tentative ceasefire eased fears of a wider regional conflict, with investors closely watching the risk of renewed fighting, disruptions to oil supplies and their implications for global growth and inflation.
That month also marked Kevin Warsh’s debut policy meeting as the chairman of the US Federal Reserve. The notably brief post-meeting statement, coupled with the new Fed chairman’s decision not to publish a rate forecast – in line with his criticism of forward guidance – left investors with fewer clues about future rate moves.
US Treasury yields have climbed to multi-year highs in recent months, particularly at the long end of the curve, with 30-year and 10-year yields under pressure amid concerns over Washington’s fiscal sustainability.


The 30-year yield rose over 0.04 percentage points to close at 5.31 per cent on Monday, its highest level since June 2007, while the 10-year yield rose over 0.02 percentage points to 4.724 per cent.
Meanwhile, yields on five-year and two-year Treasury notes rose over 0.01 percentage point to 4.376 per cent and 4.182 per cent respectively.
Among other major Treasury holders, Japan, the largest foreign holder of US debt, cut its holdings to US$1.12 trillion in June from US$1.14 trillion in May, while the United Kingdom’s holdings dropped to US$939.9 billion from US$948.6 billion.
Late last month, Washington and Tokyo intervened to stem the Japanese yen’s slide, marking their first joint yen-buying intervention since 1998, with observers widely speculating that US involvement might also help limit selling pressure on US Treasuries.
China slipped to third place among foreign holders of US Treasuries in March last year – behind Japan and the UK – continuing a gradual but uneven retreat that began during US President Donald Trump’s first term amid rising tensions and concerns over the weaponisation of the US dollar.
In contrast to its broader sell-off of US debt, China has steadily added to its gold reserves, widely viewed as a hedge against geopolitical and financial risks.
Official data showed the People’s Bank of China increased its bullion holdings for the 21st consecutive month in July, bringing the total to 76.08 million troy ounces (2.37 million kg).


China cuts US Treasury holdings to 18-year low amid global bond sell-off

Hong Kong stocks decline after Fed raises interest rates and signals more to come

Gold rebounds after Fed rate rise as banks back long-term demand outlook

US rate increase should only have short-term impact on Hong Kong stocks: CICC

Banking & finance

China trims US Treasury holdings amid Iran war, Fed uncertainty

US Treasury Secretary Scott Bessent at a cabinet meeting at Camp David, Maryland, on July 31. Photo: AFP via Getty Images/TNS

The US Treasury building in Washington. Photo: Reuters

US 30-year Treasury streak: how will 5% yields reshape global capital flows?

The Federal Reserve Board building in Washington on November 14, 2025. Photo: Reuters

Reduce your exposure to US assets before they lose value, Pictet warns investors

A broker works on the floor of the New York Stock Exchange.  Photo: AP

Treasury bond futures ‘a milestone’ to boost Hong Kong’s bridgehead role: CSRC chairman

The HKEX China government bond futures launch ceremony on Monday. Photo: Jonathan Wong

The launch ceremony for China government bond futures held at Hong Kong Exchanges and Clearing on Monday. From left, HKEX chairman Carlson Tong, Financial Secretary Paul Chan Mo-po, China Securities Regulatory Commission chairman Wu Qing and Zhou Ji, director of the liaison office of the central government in Hong Kong. Photo: Jonathan Wong

CSRC chairman Wu Qing at the launch ceremony. Photo: Jonathan Wong

China among top gold buyers as bullion overtakes US Treasuries in global reserves: ECB

Gold buying reached historic highs in 2025, driven by geopolitical risks and higher valuations. Photo: dpa

As the world retreats from US Treasuries, will the sell-off deepen?

Kevin Warsh was confirmed as the next chairman of the US Federal Reserve earlier this month. Photo: Reuters

Economy

Economic Indicators

Global Economy

China Economy

News

Economy, Trade & Business

World

United States & Canada

Beijing cuts exposure to US debt to US$633.4 billion, official data shows, amid broader diversification push


Beijing cuts exposure to US debt to US$633.4 billion, official data shows, amid broader diversification push.


China trims US Treasury holdings amid Iran war, Fed uncertainty

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Beijing cuts exposure to US debt to US$633.4 billion, official data shows, amid broader diversification push

Beijing cuts exposure to US debt to US$633.4 billion, official data shows, amid broader diversification push