The UK has leap-frogged China to become the #2 largest foreign holder of US Treasuries. The Bank of England isn't on a buying binge. Rather it's global banks, insurers, custodians and hedge-fund “basis traders” booking positions through the City. China’s been drip-selling Treasuries for a decade, rotating into agencies, gold and crucially, shorter-dated bills to keep its options open. -The foreign share of the $27 trillion US Treasury market keeps shrinking, raising Washington’s sensitivity to ratings downgrades and home-grown demand shocks. -A thinner Chinese bid can nudge yields higher just as the Fed flirts with cuts. -For the City, it’s a post-Brexit branding win: London remains the balance sheet for global dollar flow. James Eagle, Founder of Eeagli @LinkedIn