The Number Of Countries Ditching U.S. Debt Just Hit Highest Level Ever Recorded

Foreign central banks and government institutions sold $57.2 billion of U.S. Treasury debt and other notes in January, up from $48 billion in December, according a report on CNN Money. The report claims that this is the highest monthly tally on record going back to 1978.

It's part of a broader trend that gathered steam last year when central banks sold a record $225 billion of U.S. debt, the report said.

Related Link: Stockpile Liquidation Event Could Hurt U.S. Economy, Analysts Warn

The CNN report said China has been liquidating its holdings of foreign debt to pump money into its slowing economy, plummeting currency and extremely volatile stock market. China, the largest owner of U.S. debt, trimmed its Treasury holdings by $8.2 billion in January. The actual decline was likely larger considering China reported selling $100 billion of foreign-exchange reserves in January.

Despite this setback, demand for U.S. Treasuries remains high. The benchmark 10-year Treasury yield stands at 1.99 percent. That's down from nearly 3 percent two years ago.