---
title: "China slashes US debt holdings as foreign retreat deepens"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287436319.md"
description: "In March, foreign investors sold off $240 billion in U.S. Treasuries, with China reducing its holdings by $41 billion to levels not seen since 2008. This decline in foreign demand is leading to higher yields, which may result in increased costs for mortgages and loans. Analysts warn that future supply risks could further exacerbate these yield trends."
datetime: "2026-05-23T16:13:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287436319.md)
  - [en](https://longbridge.com/en/news/287436319.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287436319.md)
---

# China slashes US debt holdings as foreign retreat deepens

Historic foreign selloff: Foreign investors dumped $240 billion in U.S. Treasuries in March, with China cutting holdings by $41 billion to 2008 lows. Rising borrowing costs: Falling foreign demand is pushing yields higher, which could translate into more expensive mortgages, loans, and credit. Future supply risks: Market watchers say longer-term issuance could rise in coming years, potentially reinforcing existing yield trends.

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