"For the first time in 11 months China's holdings of US Treasury bonds fell - to $763.5 billion in April, US government data showed.
The figure, down from March's $767.9 billion, was the lowest since June 2008.
They do not include US Treasury bond holding in Hong Kong Special Administrative Region, which climbed to $80.9 billion in April from $78.9 billion the previous month."
They continue:
"As the largest holder of US Treasury bills, which are crucial to funding Washington's multi-trillion-dollar recovery plans, China had expressed concerns recently over what it called the safety of its dollar-linked assets.
US Treasury Secretary Timothy Geithner traveled to Beijing about two weeks ago to reassure Chinese leaders, saying their money is "very safe" despite the US budget deficit, which he pledged to cut."
This must be watched closely since as we have said just a few days ago the alternative is FED buying on the FED Balance Sheet and the explosion of inflation in the not too distant future.
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