The U.S. Treasury building in Washington, D.C.
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China’s holdings of U.S. debt have fallen below $1 trillion for the first time in 12 years amid rising interest rates that have made Treasurys potentially less attractive.
Continuing a trend that began early in 2021, China’s portfolio of U.S. government debt in May dropped to $980.8 billion, according to Treasury Department data released Monday. That’s a decline of nearly $23 billion from April and down nearly $100 billion, or 9%, from the year-earlier month.
It also marked the first time since May 2010 that China’s holdings fell below the $1 trillion mark. Japan is now the leading holder of U.S. debt with…