Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Shift in Treasury holdings is latest symptom of emerging-market slowdown hitting global economy

By

Min Zeng and

Lingling Wei

Oct. 7, 2015 1:34 a.m. ET

Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis.
Sales by China, Russia, Brazil and Taiwan are the latest sign of an emerging-markets slowdown that is threatening to spill over into the U.S. economy. Previously, all four were large purchasers of U.S. debt.
While central banks have been...

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