16.08.201701:50:00UTC+00China Regain Title as Biggest Foreign Holder of Treasuries

China managed to reclaim its spot as the top foreign holder of U.S. debt, after increasing its holdings of Treasuries for the fifth straight month.

China acquired $44.3 billion of Treasuries in June, its biggest buy since June 2011, increasing its reserves for the fifth consecutive month and bringing its total holdings to $1.1147 trillion in June. The figure is up $44.3 billion from the previous month, data from the Treasury Department showed.

Japan owned $1.09 trillion, a decline of $20.5 billion from its total holdings in May. Japan managed to snatch the top position from China in October as the biggest holder of U.S. Treasuries, according to figures.

The two nations account for over a third of all foreign ownership of Treasuries, which rose by $47.7 billion in June to 6.17 trillion, the figures showed.

China's forex reserves rose for the sixth consecutive month to $308 trillion in July as the yuan firmed and economic growth continued to be robust. Tighter capital controls and the stabilizing yuan this 2017 have caused the capital outflow pressures to abate, as policymakers attempt to entice foreign investors to put more money into the country. The yuan has risen almost 4 percent versus the dollar this year, recovering from an almost 7 percent drop in 2016.