China reduced its stake and lost the position it's held for more than a year as the largest foreign holder of Treasury debt. Japan retook the top spot as it boosted its Treasury holdings.
China's withdrawal from number first to second largest holder of U.S. Treasury securities is troubling. Perhaps China is buying through the United Kingdom. Perhaps, not.
The activities of overseas branches of US commercial banks are considered to be foreign transactions. The jump in the United (Kingdom) purchases could be reflect that. Since London, also Zurich, are clearing-houses for nominee accounts and anonymous trusts, it is impossible to know who's really doing the buying. It could very well be the Fed.
Major Foreign Holders of U.S. Treasury Securities:
Source: nytimes.com
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