Summary Box: China trims US treasury holdings but retains spot as biggest US creditor

Summary Box: China trims US Treasury holdings

FOREIGN HOLDINGS: China trimmed its holdings of U.S. Treasury securities for a third month in January, reducing its position to $889 billion, a drop of $5.8 billion from December.

STILL BIGGEST: Even with the reduction, China maintained its ranking as the biggest foreign holder of U.S. Treasury debt, followed by Japan.

INTEREST RATES: If China at some point decides to sharply reduce its U.S. holdings, economists say that could send U.S. interest rates climbing higher, a development that would impact not just the government’s borrowing costs but also the rates paid by businesses and consumers.