China's holdings of US Treasuries increased further in May, rising to a record high of US$1.316 trillion, according [Offshore Company Incorporation]to data released by the US Department of Treasury.

China continues to be the largest holder of US Treasuries as the country rose its holdings by US$25.2 billion in May.

China's holdings accounted for 23.2 percent of all foreign holdings of US Treasuries, compared to the 22.3 percent in April.

Japan, the second largest holder, [HongKong Richful  - Hong Kong Company Formation, Offshore Company Incorporation]reduced its holdings to US$1.11 trillion, US government data showed.

China has increased its holdings of long-term U.S. government debt in eight of the past 12 months, during which its holdings was up by US$151.9 billion.

The yield of the 10-year US Treasury securities[HK Corporate Registration] reached a two-month high in May as the world's largest economy showed more signs of recovery and also a stronger dollar.