(Yicai Global) July 18 -- China, the United States’ second-largest creditor, reduced its holdings of US Treasury bonds in May to the lowest level in 13 years, as foreign investors sold for the first time in four months.

China pared its ownership of US Treasuries by USD22.2 billion to USD846.7 billion in May from the previous month, according to data released yesterday by the US Department of the Treasury.

China cut its holdings for seven straight months until February, increased them slightly in March, and then resumed shrinking them in April and May.

Japan, the US’ biggest creditor, also trimmed its holdings of US Treasury bonds in May, slimming them by USD30.4 billion to USD1.0968 trillion, the steepest drop since last October.

Foreign investors’ holdings of US Treasuries fell for the first time in four months in May, declining to USD7.527 trillion from USD7.581 trillion in April, the data showed.

Net foreign acquisitions of US short- and long-term securities and bank flows stood at USD167.6 billion in May. Among them, the net outflow of private funds was USD168.2 billion, and the net inflow of official funds was USD600 million.

Editor: Futura Costaglione