(CNBC) China sold almost $48 billion worth of U.S. Treasurys in December, the most in two years. A huge sum but not a sign that China is about to give up being the world's biggest foreign holder of Treasuries anytime soon, analysts say.
For years now there has been speculation that China, which has the largest foreign exchange reserves globally, would diversify away from its holdings of U.S. government bonds, perhaps towards Europe.
In this context, data Tuesday on the foreign holdings of U.S. securities was telling. China's holdings of Treasuries fell 3.6 percent to $1.27 trillion from the month earlier, the largest decline since December 2011, it showed.
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