Cut in holdings of US debt may help diversify China's reserves

China drastically cut its holdings of US Treasury debt in June, but its purchase of more long-term securities indicates no significant change in its interest in US government bonds.

The country's holding of US Treasury securities fell to $776.4 billion in June, from a record high of $801.5 billion in May.

Despite the biggest monthly drop since 2000, China still retained its position as the top holder of US treasuries, according to US Treasury data released on Monday.