China trims holdings of US bonds to US$776 bln

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The US Treasury Department is reporting a rise in foreign demand for long-term US financial assets in June with a net worth of 90.7 billion dollars of such assets being snapped up in that month alone.

But number one holder, China has cut back on US Treasury bonds from more than 800 billion dollars in May to around 770 billion dollars by the end of June. The 3 percent decline is the largest drop so far this year.

Meanwhile, Japan, the second largest holder of US financial assets, increased its holdings to more than 710 billion. The United Kingdom, which ranks number 3, raised its holdings to 214 billion, up 0.6 percent. But, like China, Russia also cut holdings of US financial assets for the month of June.