China reduced its U.S. Treasury holdings to $633.4 billion in June from $659.3 billion in May, the lowest level since September 2008, as long-dated U.S. borrowing costs climbed and Beijing continued diversifying its foreign exchange reserves. The shift came with the 30-year Treasury yield rising to 5.31%, its highest since June 2007, reflecting investor concern over deficits, borrowing needs and fiscal sustainability. Japan and the United Kingdom also trimmed their Treasury positions in June, while total foreign holdings fell to $9.299 trillion from $9.371 trillion in May, signaling softer overseas demand for U.S. government debt. China had already slipped to the third-largest foreign holder in March last year, extending a drawdown trend that began during President Donald Trump’s first tenure. At the same time, China has been increasing its gold reserves as a hedge against geopolitical and financial risks. The People's Bank of China lifted bullion holdings for a 21st consecutive month in July to 76.08 million troy ounces. The report also highlighted broader pressure in the Treasury market, including a record July budget deficit of $432 billion, U.S. national debt nearing $40 trillion, and the iShares 20+ Year Treasury Bond ETF falling to its lowest level since June 2004.