China reduced its holdings of U.S. Treasury bonds by $41 billion in March, while Japan significantly cut its holdings by $47.7 billion. The widespread sell-off of U.S. Treasury bonds by multiple count

Foreign media: According to U.S. Treasury data, China reduced its holdings of U.S. Treasuries by $41 billion in March, bringing its total stake down from $693.3 billion to $652.3 billion, still ranking as the third-largest foreign holder; Japan, the largest holder, saw a more significant reduction of $47.7 billion, dropping to $119.2 billion.

Of the top ten foreign holders globally, seven chose to reduce their holdings, with total assets declining from $949 billion to $935 billion.

Analysis by Morgan Stanley's Chief China Economist suggests that escalating U.S.-Iran conflict has triggered concerns over rising oil prices and inflation, driving up U.S. bond yields and resetting expectations for Federal Reserve rate cuts, thereby intensifying global risk-averse sentiment. Meanwhile, the conflict has disrupted shipping routes and weakened the ability of Middle Eastern oil-exporting countries to purchase U.S. Treasuries, jointly fueling this global wave of U.S. Treasury selling.

Original source: toutiao.com/article/1865599823936649/

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