China increased its US Treasury holdings in May by US$25.2 billion to a record US$1.3 trillion, Bloomberg reported, citing US Treasury Department data released Tuesday. China’s holdings grew while net selling by other foreign investors in US Treasuries spiked. Japan, the second-largest Treasuries holder, reduced its holdings to US$1.1 trillion, reaching US$27.2 billion in net outflow of long-term portfolio investments. The yield on the 10-year Treasury bond rose in May on speculation over the Federal Reserve potentially gearing down its bond-buying program. Overall, net sell-offs of Treasuries by private foreign investors also reached record highs.