(Reuters) – Foreigners soured on long-term U.S. securities in August, shedding both stocks and government bonds, and China’s Treasury holdings fell to a six-month low, U.S. Treasury data showed on Tuesday.
Overseas holdings of long-term U.S. securities decreased by $8.9 billion in August. Those holdings had increased by $30.9 billion in July.
Foreign Treasuries’ holdings fell by $10.8 billion in August. China, the largest foreign U.S. creditor, saw its holdings decline $11.2 billion to $1.268 trillion.
The decline came a month before the Federal Reserve decided not to slow its massive monetary stimulus, which includes monthly purchases of government and mortgage-backed bonds.
Foreigners soured on long-term U.S. securities in August, shedding both stocks and government bonds.
China’s Treasury purchases have slowed in recent years, a trend that is likely to continue, said BNY Mellon currency strategist Michael Woolfolk.