In which case, why is it cutting Treasury purchases? — as these charts from Standard Chartered very poignantly demonstrate:
The analysts do warn, however, that one month’s data might not be enough to change their view that China ultimately remains and will remain a significant buyer of treasuries in the future. As they write:
This all brings us to two conclusions. First, with just one month of data showing a decline in China’s holdings, we are not ready to change our view that China continues to buy US debt — especially since the official data does not capture all of China’s purchases. Second, it is important to recognise that as the US current account deficit narrows, US debt will increasingly find buyers at home, reducing its dependence on foreign buyers.
Brics confounded on dollar debate as sterling regains some sparkle – FT Alphaville
Another illogical Russian smackdown for US treasuries – FT Alphaville
All the treasuries in China – FT Alphaville