China's Treasury Pile Is Shrinking on Paper. The Custody Data Tell a Different Story

What happened: China held $590.7 billion of U.S. Treasuries at the end of August, down from $699.7 billion a year earlier, the lowest in 18 years per Fortune. Custody data show Belgium and Canada holdings rising over the same period. Key numbers: China holdings $590.7B vs $699.7B a year earlier. Why it matters: Brad Setser of the Council on Foreign Relations told Fortune it seems likely China is using multiple non-U.S. custodians to mask its true holdings, since Treasury data is gathered mainly from U.S. custodians and may not attribute overseas-held securities to their owners. Market: -0.9% today ($143.16), +23.4% YTD, 0.2x vol — as of 16:17 UTC

Custody data contradict the paper decline in China's Treasury holdings, signaling a key fixed-income catalyst.

Custody data contradict the paper decline in China's Treasury holdings, signaling a key fixed-income catalyst. — impact context not separately stored; see What changed.