According to the US Treasury Department, China’s holdings of US Treasury bonds and notes fell to the lowest level since May 2017 during April this year. This data hints at possible further straining of trade ties between US and China.

In April, China’s holding of US government bonds touched $1.113 trillion, declining for the second consecutive month from $1.20 trillion in March. During the same period, Japan also reduced its holdings of US Treasuries in April to $1.064 trillion from $.1078 trillion in the previous month.

Despite the decline in figures, China continues to remain the largest non-US holder of US Treasuries, with Japan following as the second-largest holder worldwide.