According to the May TIC data, Chinese holdings of US Treasuries fell to the lowest level since May ’09 at $867.7b, down $32.5b from April. All of the decline was in maturing bills as they bought a net $2.9b of bonds and notes. So, it’s apparent that while China is not outright selling US Treasuries and in fact still buying, they are not recycling all of the maturing short term securities into new ones, for now.
