File photo:Xinhua

Chinese mainland's holdings of US treasury securities dropped to $980.8 billion in May 2022, which was the first time for it to drop below $1 trillion in 12 years since May 2010, according to data released by the US Department of the Treasury on Monday.

Chinese mainland, as the second largest holder of the US treasury, has reduced its holdings six months in a row from $1.08 trillion in November 2021 to $980.8 billion in May 2022. The previous time when it held less than $1 trillion of US treasury was in May 2010 - $843.7 billion.

Japan remained the largest holder of US debt, but has also recorded decreasing holdings recently from $1.232 trillion in March to $1.212 trillion in May.

The US economy has been mired in skyrocketing inflation and potential risk of recession. Consumer Price Index (CPI) in the US hit a 41-year high to 9.1 percent in June, fueling market speculation that the US Fed may stick to its hawkish stance and further hike the US interest rate by 0.75 percentage points or even more in the upcoming meeting in late July.

The sum total of US treasury held by foreign holders has recorded a decrease three months in a row, from $7.71 trillion in February to $7.42 trillion in May.

Global Times