For the first time in the past 12 years, China's holdings have fallen below trillions

On July 18, the US Ministry of Finance issued the international capital flow report as of May this year. Among them, the most concerned US debt holding data shows that the US debt held in Mainland China in May decreased by US $ 22.6 billion to 980.8 billion US dollars. Falling, the first time after 12 years fell below the trillions of dollars, compared with US $ 107.84 billion last year, the scale reduction reached 97.6 billion US dollars. The main cause of inflation caused the Federal Reserve to raise interest rates or the decline in the attraction of US debt.

Screenshot of the U.S. Finance

The largest "creditors" in the United States also decreased by nearly 6 billion US dollars to US $ 1.2 trillion at the end of May, a decrease of $ 53.4 billion from the same period last year. Japan has reduced its holdings for three consecutive months, and the total position has continued to refresh a new low in 2020.

The third place in the UK, which holds the third place in May, increased by US $ 21.3 billion from the previous month to $ 634 billion, and has been out of the lowest half -year in April.

The fourth -fourth -ranking Switzerland increased its holdings in various countries and regions, and the holding of the position increased by $ 22.5 billion to 194.1 billion US dollars.

Overall, foreign bonds held by foreign countries fell from US $ 74555 trillion in April to US $ 7.421 trillion, the lowest level since May 2021.

U.S. debt holdings are affected by many factors, and American Consumer News and Business Channel (CNBC) reported on July 18 that China ’s efforts to diversify its foreign debt combination, which is one of the reasons for the decline in China's share in US bonds. In addition, the Fed's continuous interest rate hike has also weakened the attraction of US debt.

The Federal Reserve has been raising interest rates in the past few months to curb the rise in American inflation. According to data released by the US Department of Labor on the 13th, the US Consumer Price Index (CPI) in June has risen by 1.3%month -on -month, an increase of 9.1%year -on -year, a year -on -year increase of increases. A new high since November 1981.

Last month, the Fed announced the increase of 75 basis points, the largest increase in the past 30 years. According to Reuters on the 15th, Fed officials said on July 15 that they may continue to raise interest rates at 75 basis points at a meeting from July 26 to 27. High inflation may also cause interest rate hikes to higher than expected.

CNBC said that when bond interest rates rise, it means that the decline in bond prices will cause losses for investors who are not holding due.

Source: Observer.com

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