Some nice MSM panic today via Reuters:
Whether China is reducing its vast holdings of U.S. Treasury bonds is a persistent question in global markets, and the recent escalation in trade tensions between the world’s two largest economies means the question is increasingly on investors’ minds. The U.S. Treasury’s latest report on international capital flows on Monday will provide an answer, albeit an imperfect one given the data’s two-month lag.
China has indeed been trimming its cache of Treasuries. In January, the latest reading, it held nearly $1.17 trillion worth of U.S. debt – the largest of any foreign creditor – down from around $1.2 trillion in August.
