US Treasuries sales by Beijing erode support ahead of rate hike

New York

THE last time the Federal Reserve was preparing to raise interest rates, China was one of the biggest supporters of the Treasury market, along with other countries that were adding to their holdings. This time it's different.

China reduced its stake in US government debt in July by about US$82.7 billion, Treasury Department data showed on Wednesday. The calculation includes securities held in Belgium, which Nomura Holdings Inc says is home to some Chinese accounts. Overseas ownership of Treasuries fell by 1.6 per cent in July, the biggest decline since July 2006.