(Yicai Global) March 17 -- China nudged down its holdings in US treasury bonds month-on-month in January, the latest data show. China reduced its holdings in US treasury bonds by USD7.3 billion in January compared with the previous month, China News Service reported, citing statistics released by the US Treasury on March 15. China's US bond holdings fell USD186.9 billion to USD1.0511 trillion in January, but the country remained the second largest foreign holder of US treasury bonds as of the end of the month.
The report said the US bond market is important for China, citing a Chinese government official, and that increases or reductions in its bond holdings by China are normal investment operations. China will optimize and adjust its holdings according to changes in market conditions, the official added.
Japan, US' largest debt owner, raised its holdings in US treasury bonds by USD11.7 billion to USD1.1025 trillion in January. As of the end of the month, the total value of US treasury bonds owned by major bond holders dropped from USD6.0039 trillion in Dec. to USD5.9561 trillion.