Data from the US Treasury's Department shows that China has increased its holdings of US treasury bonds by a net $7.3 billion US dollars in May, increasing its total holdings to $1.16 trillion dollars.

This marked the second month China upped its holdings of US treasury bonds.

China, which the largest foreign holder of US treasury bonds, had reduced its holdings by a net $30.4 billion dollars from last November to March this year.

The second largest foreign holder of US treasury bonds, Japan, upped its holdings of US treasury bonds by $5.5 billion dollars in May, increasing its total holdings to $912.4 billion dollars.

The third-largest foreign holder, the U.K., also increased its holdings in May.

For more on this, I spoke earlier with Duncan Innes-Ker, Analyst at Economist Intelligence Unit.