Japan, China lead foreign government retreat from U.S. Treasurys as Gulf War fallout stokes currency fears
**KEY POINTS**
China reduced its stash of Treasury to $652.3 billion, the lowest level since September 2008.
Japan, the single largest foreign holder, shed approximately $47 billion to $1.191 trillion.
The U.S.-Iran conflict and a subsequent surge in crude oil prices sent currencies tumbling.
China has been gradually reducing its direct Treasury exposure since its peak in 2013, “shadow holding” in custodial countries.
China reduced its stash of Treasury to $652.3 billion, the lowest level since September 2008.
Japan, the single largest foreign holder, shed approximately $47 billion to $1.191 trillion.
The U.S.-Iran conflict and a subsequent surge in crude oil prices sent currencies tumbling.
China has been gradually reducing its direct Treasury exposure since its peak in 2013, “shadow holding” in custodial countries.