China increased its holdings of US Treasuries by 1.3% to US$1.17 trillion in March, remaining the largest foreign creditor to the US, Bloomberg reported. Japan, the second-largest lender, reduced its holdings 0.2% to US$1.08 trillion, while net foreign purchases increased 0.4% to a record US$5.12 trillion. Yields on the 10-year Treasury bill reached 2.4%, the highest level since October, as investors responded positively to gains in the US labor market. In the first three months of the year, China’s holdings of US government debt rose 1.6%, reversing a 9.3% decline in the final three months of the year. Of China’s total holdings, US$1.166 trillion was in longer-term notes and bonds by the end of March, while US$3.9 billion was in short-term bills, Treasury data showed.