(Yicai Global) Feb. 18 -- China, the United States’ second-biggest creditor, sold USD1.5 billion of US Treasury bonds in December as foreign investors pared their  holdings of US government debt for a fifth month in a row.China owned USD1.0615 trillion of US government bonds in December, according to US Treasury Department data released yesterday. In November, China had raised its tally by USD9 billion from a month earlier.

Total foreign holdings of US Treasuries fell to USD7.04 trillion at the end of last year, down USD17.5 billion from November.

Yields have climbed sharply this week. That for 10-year US Treasury notes rose to 1.333 percent yesterday, the highest level in a year, from about 1.2 percent on Feb. 12.

Investors are selling safe-haven assets due to the better economic outlook after firms reported robust fourth-quarter earnings results amid progress in Covid-19 vaccination programs, the Paper reported, citing market analysts.

Japan cut its holdings of US Treasuries by USD4 billion to USD1.26 trillion in December, remaining the US’ top creditor. Japan surpassed China in that regard in June 2019. Japan’s highest tally was USD1.29 trillion in July 2020.

The UK was No. 3. It raised its holdings by USD26.1 billion to USD446.6 billion. 

Editor: Emmi Laine, Xiao Yi