China Reduces Holding of US Bonds

Translated by Qi Changlong
Original article:[Chinese]

China has reduced holding of US treasury bonds for three months straight, selling a total of 20.6 billion USD worth of bonds between November 2010 and January 2011.

Despite that, China remains the biggest holder of US bonds, amounting to 1,154.7 billion USD, according to data released by the US Treasury Department on March 15.

The data showed that in November and December 2010, China reduced US bonds by ＄4 billion and 11.2 billion respectively; in January, China sold another ＄5.4 billion.

Japan, the second largest holder of US treasury, has increased its holdings of US bonds for the past 7 months. At present, Japan holds up to ＄885.6 billion in US bonds, a historic high.

Whether the earthquake and tsunami will affect Japanese holdings remains unknown. A large number of reports, however, speculated that Japan might withdraw its fund to support reconstruction.

Links and Sources:

China News Agency:中国连续三月减持美国国债 仍是最大持有国(Chinese)