China's holdings of US Treasuries increased further in May, rising to a record high of US$1.316 trillion, according to data released by the US Department of Treasury.
China continues to be the largest holder of US Treasuries as the country rose its holdings by US$25.2 billion in May.
China's holdings accounted for 23.2 percent of all foreign holdings of US Treasuries, compared to the 22.3 percent in April.
Japan, the second largest holder, reduced its holdings to US$1.11 trillion, US government data showed.
China has increased its holdings of long-term U.S. government debt in eight of the past 12 months, during which its holdings was up by US$151.9 billion.
The yield of the 10-year US Treasury securities reached a two-month high in May as the world's largest economy showed more signs of recovery and also a stronger dollar.