Foreign media reports indicate China has reduced its holdings of U.S. Treasury securities. The question arises: Is the appeal of U.S. debt still intact?

Foreign media: Data from the U.S. Department of the Treasury show that China reduced its holdings of U.S. Treasury securities by $27.3 billion in August, bringing its total to $590.7 billion—the lowest level since August 2008, a span of 18 years—due to escalating geopolitical tensions and concerns over Washington’s fiscal outlook.

Japan simultaneously sold $35.6 billion in U.S. debt, reducing its holdings to $1.07 trillion; meanwhile, the United Kingdom and Canada increased their positions to $1.01 trillion and $464.6 billion, respectively, contributing to a rise in foreign-held U.S. debt from $9.25 trillion to $9.33 trillion.

U.S. federal debt surpassed $40 trillion in August, while the yield on 30-year Treasury bonds remained above 5%, intensifying concerns over long-term fiscal sustainability.

Original source: toutiao.com/article/1879488424382475/

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