Treasuries Slow, China Reduces Holdings

WASHINGTON—Overall inflows into U.S. assets slowed in May, including from China, which cut its portfolio, Treasury Department data showed Friday.
China's holdings of Treasurys fell $32.5 billion to $867.7 billion, but maintained the top position among foreign countries.
Selling by China since late last year for four consecutive months raised some concerns that the largest creditor nation to the U.S. may be reducing its exposure to the dollar, but analysts said the move has partly reflected a portfolio rebalancing into longer-term U.S. securities. In the two months prior to May, China increased its holdings.