China's US Treasury holdings hit 18-year low amid global sell-off

According to the US Treasury Department's TIC report, China's holdings of US government debt fell to $618 billion in July, the lowest level since 2008. While global foreign holdings of US debt declined for the second consecutive month to $9.25 trillion, the report notes that official foreign institutions, such as central banks, remained net buyers. Analysts caution against interpreting these figures as a systematic move toward de-dollarization, citing limitations in custodial data. Meanwhile, the 10-year US Treasury yield has surged past 5%, raising concerns about increased US government borrowing costs and potential pressure on risk assets like Bitcoin.