(Yicai Global) Aug. 16 -- China’s holdings of US Treasury bonds shrank for the seventh consecutive month in June to the lowest level in 12 years.

China cut its holdings by USD13 billion to USD967.8 billion in June, the lowest level since May 2010, but it remains the US’ second-biggest creditor, according to data released by the US Treasury Department yesterday.

In May, China’s stash of US government debt fell below USD1 trillion for the first time since May 2010.

Japan was still the top owner of Treasuries in June, increasing its share by USD12.6 billion to USD1.2 trillion and ending three months of reductions. The UK, which ranks third, shaved its holdings by USD19.1 billion.

In June, there were USD22.1 billion of foreign net purchases of long-term securities, short-term US securities and banks’ liquidity, according to the treasury department. Foreign private net inflows came to USD23.1 billion, while overseas official net outflows amounted to USD1.1 billion.

Editor: Kim Taylor