China 's US debt holdings dipped below $1 trillion for the first time since 2010, Treasury data shows.- The decline means China is no longer the biggest holder of US debt.
China is no longer the biggest holder of US debt, as its portfolio has dipped below $1 trillion for the first time since 2010.
In May, China held $980.8 billion in US debt, down $23 billion from the prior month and almost $100 billion from a year ago, according to Treasury Department data released on Monday. China has reduced its Treasury holdings for six straight months.
Japan, which trimmed its US debt stockpile to $1.212 trillion in May from $1.218 trillion in April, is now the top holder.
Total foreign holdings of US debt fell to $7.42 trillion in May from $7.45 trillion in April.
Beijing has been moving to diversify its debt holdings, while the Federal Reserve's rate-hiking cycle that began earlier this year has been lowering prices of US bonds.
In June, the central bank hiked interest rates by 75 basis points. And Wall Street is broadly expecting the same-size hike for the upcoming July meeting.