China reduced its holdings of U.S. Treasuries for the seventh consecutive month, bringing its holdings to the lowest level in 12 years.

　　According to the Treasury International Capital (TIC) data for June 2022 released by the U.S. Treasury Department on August 15, Eastern Time, in June, U.S. Treasuries held overseas increased by $5.1 billion to $7.43 trillion in June.

Among them, Japan's June holdings of US Treasuries increased by 12.6 billion US dollars to 1.2363 trillion US dollars.

China (Mainland) holdings of U.S. Treasuries fell by $13 billion in June to $967.8 billion.

　　TIC data for June showed that Japan held $1.3286 trillion in U.S. Treasuries in November last year.

In March this year, under the divergence of US interest rate hikes and Japan's loose monetary policy, Japan's holdings of US Treasuries plunged to US$1.2324 trillion in March, a decrease of US$73.9 billion from the previous month.

In April, Japan continued to reduce its holdings of U.S. debt to $1.2185 trillion, and in May, Japan’s holdings of U.S. debt rose slightly to $1.2237 trillion.

The newly disclosed TIC data means that Japan's trend of reducing its holdings of U.S. Treasury bonds has pressed the "pause button", but China has reduced its holdings of U.S. Treasury bonds for seven consecutive months, and the scale has dropped to the lowest level in 12 years.

　　All foreign net purchases of long-term securities, short-term U.S. securities and bank liquidity combined totaled $22.1 billion in June, according to the U.S. Treasury Department.

Of this, foreign private net inflows were $23.1 billion and foreign official net outflows were $1.1 billion.

　　Foreign residents increased their holdings of long-term U.S. securities in June, with net purchases of $71.2 billion.

Net purchases by foreign private investors were $66.8 billion, compared with $4.4 billion by foreign official institutions.

U.S. residents reduced their holdings of long-term foreign securities, with net sales of $50.5 billion.

　　Taking into account foreign and U.S. securities transactions, net foreign purchases of long-term securities were $121.8 billion.

After including adjustments such as estimated unrecorded principal payments to foreigners from U.S. asset-backed securities, the overall net foreign purchase of long-term securities in June was estimated at $132 billion.

　　U.S. Treasury bills held by foreign residents fell by $18.3 billion.

All dollar-denominated short-term U.S. securities and other escrow liabilities held by foreign residents decreased by $21.1 billion.

The banks' own dollar-denominated net liabilities to foreign residents fell by $88.8 billion.

　　The U.S. Treasury Department said July data from Treasury International Capital (TIC) is scheduled for release on September 16, 2022.

　　The Paper reporter Chen Peizhen