🇨🇳🇺🇸 China reduces US Treasury holdings to an 18-year low

• For over a decade, China has steadily decreased its holdings of US Treasuries—falling from around $1.3 trillion in the early 2010s to just $618 billion today.

• The drawdown accelerated after 2022, as Beijing moved to limit its exposure to American financial instruments amid growing strategic caution.

• As foreign governments pull back, private capital—especially hedge funds and institutional investors—is stepping in to absorb the increasing supply of government debt.

• The shrinking demand from overseas is contributing to higher Treasury yields; the 30-year yield recently hit its highest level in nearly 20 years.

• Rising yields translate into higher borrowing costs for the US government, further straining an already pressured fiscal situation.

#GlobalEconomy #USDebt #ChinaInvesting #TreasuryYields

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