China's aggressive selling of US Treasuries sparks concerns over rising long rates, causing havoc in financial markets.

China's holdings of US Treasuries have been falling sharply, with over $40 billion sold since April and nearly $500 billion unloaded over the past decade. This aggressive selling by China is causing concerns about the rise in US long rates. China's reduced holdings have led to speculation that it may be a source of the recent move higher in treasury yields. The selloff in US Treasuries is starting to spread havoc across financial markets, with losses surpassing $1.5 trillion. Despite the reduction in holdings, China remains the second-largest foreign investor in US Treasuries.