China Slashes U.S. Treasuries to 2008-Low Exposure
China Continues to Shed US Treasuries, Reaches Lowest Exposure Levels Since 2008
China trimmed its holdings of US Treasuries in November to the lowest level since 2008, moving against a broader global trend that pushed total foreign ownership of the debt instruments to a record high.
According to the figures provided, China’s Treasury holdings fell to $682.6 billion, the lowest level since September 2008. The position is also described as more than 10% below China’s holdings at the start of 2025.
Even after the reduction, China remains the third-largest foreign holder of US Treasuries. However, the data indicates a steady pattern of lowering exposure over time.
The move matters because US Treasuries are central to global finance, commonly held by governments and large institutions as highly liquid assets. Shifts in large holders’ positions are closely watched for what they indicate about cross-border demand for US government debt, especially when set against the backdrop of record-high overall foreign ownership.
