Chinese holdings of US government debt fell to a ten-month low in December. According to the US treasury department, US government debt held by China – the largest offshore holder globally – fell by $18.4 billion to $1.25 trillion in December, leaving the holdings of bills, notes and bonds largely unchanged from the levels of a year earlier. The tweet below from ANZ’s senior interest rate strategist Martin Whetton reveals the movements in US debt holdings by individual nation in December. Chinese foreign debt holdings – fell by an even larger $22 billion, suggesting that the official reduction through direct Chinese ... (full story)