China cut its stockpile of US Treasuries in March, before its trade war with US President Donald Trump escalated, stepping aside from its position as the No 2 overseas holder.
As foreign holdings rose for a third straight month to an all-time peak of US$9.05 trillion in March, China’s stockpile slid to US$765.4 billion, down US$18.9 billion from the previous month and ending an upswing in holdings in the January-February period, according to data released by the US Department of the Treasury on Friday.
The data also showed that China dropped to third place among foreign holders of US Treasuries. Britain took its spot as America’s second-biggest foreign creditor, with holdings surging by US$29 billion to US$779.3 billion in March.
China reduced its exposure before US government bonds endured one of their wildest months in years in April, when US President Donald Trump’s “Liberation Day” tariff announcement triggered a sharp…
