CHINA DUMPS US TREASURIES AS US DEBT HITS $40 TRILLION
CHINA DUMPS US TREASURIES AS US DEBT HITS $40 TRILLION
China’s holdings of US government debt have plummeted to $618 billion…the lowest level since August 2008.
· Down from a peak of $1.3 trillion in 2013.
· Pivoting to gold, agency bonds, and equities.
· The move accelerated after the US froze Russian assets in 2022, sparking fears of similar “coercive measures” against Beijing.
With US debt at a record $40 trillion, foreign investors are increasingly choosing US stocks over bonds.
As Natixis’ Alicia García Herrero puts it: “China’s move is mostly showing the US they can dump Treasuries.”
China is now the 3rd largest holder of US Treasuries, behind Japan and the UK.