China's US Treasury holdings cut to 2010 level

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