$491,900,000,000 in US Treasuries Dumped by China in a Decade As Country's US Debt Holdings Hit 14-Year Low - The Daily Hodl
The second-largest economy in the world has been steadily unloading hundreds of billions of dollars worth of US government-backed securities for more than a decade....
- China has been gradually selling off its holdings of US Treasury securities for over a decade.
- The latest data from the US Treasury Department shows that China's holdings have reached a 14-year low.
- China's stockpile of US Treasuries peaked at $1.297 trillion in May 2013 and has since decreased to $805.4 billion as of August 2023.
- Moody's warns that the US' large fiscal deficits, combined with higher interest rates, could significantly weaken debt affordability.
- A downgrade in the outlook of the US' debt by Moody's increases the likelihood of a future credit rating cut.
The article highlights China's ongoing divestment of US Treasury securities and raises concerns about the US' fiscal deficits and debt affordability. The sentiment is neutral to slightly negative.