In another signal that China and Saudi Arabia are trying to reduce their exposure to the U.S. economy, the two countries reduced their holdings of Treasury securities.
In other words, Beijing and Riyadh decreased their holdings of U.S. government debt in June.
According to the Treasury Department, China dumped $11 billion in Treasury securities, down 11 percent year-over-year, to $835.4 billion.
This is the lowest level since 2009.
The Saudi Kingdom slashed its holdings by more than $3 billion, down nine percent from the same time a year ago, to $108.1 billion. Riyadh has slashed its Treasury stockpiles by more than 41 percent since 2020.
Here is a breakdown of the additions and subtractions since June 2022:
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