The report on foreign holders of U.S. Treasuries as of July 31st was released yesterday. {chart} Chinese holdings dropped by $13.6 billion. That seems more in line with “run-off” than actual selling. I don’t have China’s exact holdings in front of me, but generally foreign central banks tend to hold shorter maturity Treasuries (it is a dollar/reserve/currency play, not a yield/duration play). This seems consistent with a country that is having to spend some money to support its economy and doesn’t seem to indicate aggressive selling. Having said that, we can safely say that for the coming months (if not longer) this ... (full story)