China has drastically cut down its U.S. Treasury holdings, reaching a nearly 18-year low in June, as 30-year Treasury yields jumped to 5.31%, the highest since June 2007.
Amid rising geopolitical tensions and increasing uncertainty over U.S. policy, Beijing is diversifying its foreign exchange reserves. According to the U.S. Treasury Department, China’s holdings fell to $633.4 billion in June from $659.3 billion in May, marking their lowest level since September 2008.
