(Yicai) Nov. 20 -- China, the United States’ second-largest creditor, reduced its holdings of US Treasury bonds for the third month in a row in September.

China’s holdings of US Treasuries fell by USD2.6 billion to USD772 billion in September from the previous month, according to data released by the US Department of the Treasury on Nov. 18. The country has been holding less than USD1 trillion US Treasury bonds since April 2022.

China trimmed its US Treasuries holdings in January, February, and March. It slightly increased them in April and then cut them again in May. In June, China hiked its US Treasury bond possession again and then returned to reduce them in July.

Japan, the US’ largest creditor, also cut its holdings by USD5.9 billion to USD1.12 trillion in September. Meanwhile, the United Kingdom, the third-biggest creditor, increased its holdings by USD20.8 billion to USD764.7 billion.

The net foreign inflow into short- and long-term US securities and bank flows stood at USD398.4 billion in September, of which about USD57.3 million were official funds, and USD341.4 billion were foreign private funds, the data from the US Department of the Treasury also showed.

Editor: Futura Costaglione