China has reduced its US Treasury holdings to $618 billion, marking an 18-year low as the nation continues a decade-long divestment from American debt. Holdings have fallen sharply from approximately $1.3 trillion in the early 2010s, with the pace of selling accelerating after 2022 amid growing concerns over reliance on US assets. The shift in foreign government demand is reshaping the Treasury market, as hedge funds and private investors increasingly absorb the supply. This weakening official demand has contributed to rising yields, with the 30-year Treasury rate recently hitting a nearly 20-year high and increasing borrowing costs for the US government.