US holdings slip for China

China's stockpile of US Treasuries slid in March to the lowest level since 2009, while the total for all foreign holders saw an increase.

China's holdings - the most behind Japan's - fell by US$7.6 billion (HK$59.28 billion) to US$767.4 billion.

Starting with the February report, the Treasury began including details about how much the changes in a nation's long-term Treasuries holdings were due to movements in prices of the securities.

Total overseas holdings of US Treasuries rose by US$119.9 billion to US$8.09 trillion in March. Japan's holdings rose by US$19.9 billion to US$1.19 trillion while the UK's holdings, the third largest, increased by US$26.8 billion to US$728.1 billion, an all-time high. Benchmark 10-year Treasury yields fell by about five basis points in the month.

Bridgewater Associates founder Ray Dalio has warned rising US debt levels may hit Treasury bonds and that investors should move some of their funds to foreign markets.

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