The Treasury Department estimates that over the 12 months through July, China reduced its position in Treasury securities by $165 billion, cutting them to $1.15 trillion.
China’s selling of Treasuries over the 12-month period was largely offset by the actions of Japan, another country whose trade surplus with the United States. The Japanese are estimated to have increased their holdings by $232 billion over the 12 months, to $1.12 trillion.
So, even though Treasury rates remain extraordinarily low, confidence in America as a productive nation and safe-haven for investment remains high in many quarters.
