JUST IN: Japan and China Accelerate Cuts to U.S. Treasury Holdings
Japan and China continue reducing their exposure to U.S. government debt at a notable pace.
Japan’s Move:
➫ Sold approximately $96 billion in U.S. Treasuries over the past three months.
➫ Holdings now stand at $1.14 trillion — the lowest level since April 2025.
➫ The reduction coincides with large-scale yen-support interventions that required selling foreign reserves, including Treasuries.
China’s Ongoing Shift:
> Continues its multi-year trend of gradually trimming its portfolio.
> Official holdings remain near multi-year lows as Beijing prioritizes diversification away from U.S. debt.
These two largest foreign holders of Treasuries are both stepping back. Japan’s sales appear more tactical (linked to currency defense), while China’s reflects a longer-term strategic pivot.
Reduced foreign official demand adds another layer of pressure on the Treasury market at a time of elevated U.S. deficits and higher yields.
Japan Dumps $96B in Treasuries in 3 Months — China Keeps Trimming
Does this signal a broader structural shift in global demand for U.S. debt, or just temporary adjustments?
Japan and China continue reducing their exposure to U.S. government debt at a notable pace.
Japan’s Move:
➫ Sold approximately $96 billion in U.S. Treasuries over the past three months.
➫ Holdings now stand at $1.14 trillion — the lowest level since April 2025.
➫ The reduction coincides with large-scale yen-support interventions that required selling foreign reserves, including Treasuries.
China’s Ongoing Shift:
> Continues its multi-year trend of gradually trimming its portfolio.
> Official holdings remain near multi-year lows as Beijing prioritizes diversification away from U.S. debt.
These two largest foreign holders of Treasuries are both stepping back. Japan’s sales appear more tactical (linked to currency defense), while China’s reflects a longer-term strategic pivot.
Reduced foreign official demand adds another layer of pressure on the Treasury market at a time of elevated U.S. deficits and higher yields.
Japan Dumps $96B in Treasuries in 3 Months — China Keeps Trimming
Does this signal a broader structural shift in global demand for U.S. debt, or just temporary adjustments?