🇨🇳🇺🇸 China cuts US Treasury holdings to an 18-year low • China has been reducing its holdings for over a decade, down from around $1.3 trillion in the early 2010s to $618 billion today. • The decline accelerated after 2022 as China became more concerned about relying too heavily on US assets. • Foreign governments are buying fewer US Treasuries, while hedge funds and other investors are buying more. • Weaker foreign demand is helping push Treasury yields higher, with the 30-year yield recently hitting a nearly 20-year high. • Higher yields mean the US government has to pay more to borrow money.