China’s holdings of U.S Treasuries fell to $1.003 trillion in April, down $36.2 billion from the previous month.
Reduction may also have been aimed at diversifying China’s foreign exchange holdings.
Japan’s holdings fell further in April to their lowest since January 2020, amid a persistent decline in the yen versus the dollar.
Foreign holdings of U.S. Treasuries fell to 7.455 trillion in April, the lowest since April 2021, from $7.613 trillion in March.
The US saw net foreign outflows of $1.152 billion on a transaction basis, the first outflow since October 2021.
Foreign investors have sold stocks for four consecutive months but posted inflows of $22.587 billion into the US corporate bond market.