China cut its holdings of U.S. Treasuries by $66 billion in November, reducing its position in the safe-haven debt to the lowest level since 2010 as the country battles to stabilise its currency.
The acceleration in sales -- the largest monthly decline since December 2011 -- threatens a rise in U.S. interest rates if it continues and follows an unwinding in October that saw China cede its position as the largest foreign holder of U.S. Treasuries to Japan.
China has been selling its foreign exchange holdings in part to support the renminbi, which has fallen 4 percent against the U.S. dollar since the start of last year. The fall in Treasury holdings is part of a wider campaign by Beijing to stem capital outflows. ...
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