In a sign that its demand for American debt remains resilient, China increased its holdings of U.S. Treasurys last year by the most since 2010.
The value of China's holdings of U.S. bonds, notes and bills rose by $126.5 billion to $1.18 trillion in December from a year earlier, according to Treasury Department data released Thursday in Washington. China remains the largest non-U.S. holder of debt followed by Japan — whose holdings fell for the fifth straight month in December, to $1.06 trillion after ending 2016 at $1.09 trillion.
China's Treasury holdings are coming under extra scrutiny after a signal earlier this year that America's largest creditor may be easing bond-buying amid rising trade tensions.