China, UK, Japan Increase Holdings of US Treasuries; Foreign Holdings Reach Over $9.3 Trillion in January

SighingCashier · 2026-03-19T00:45:55+00:00

Foreign holdings of U.S. Treasury securities rebounded to $9.31 trillion in January, with Japan, the United Kingdom, and China serving as major drivers. Japan's holdings reached $1.225 trillion, the highest level since 2022; the United Kingdom increased to $895.3 billion, while China edged up to $694.4 billion but has decreased 9% since the beginning of 2025. This indicates that China is gradually diversifying its U.S. asset investments.

SighingCashier

2026-03-19 00:45:55

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Foreign holdings of U.S. Treasury bonds rebound. The U.S. Department of the Treasury announced that foreign holdings of U.S. Treasury bonds increased from $9.27 trillion in December to $9.31 trillion in January, up 0.37% month-over-month and 8% year-over-year. Japan, the United Kingdom, and China are the largest foreign holders of U.S. debt.

As yields generally rise and market expectations for Federal Reserve policies change, investors are returning to the market. Japan, the largest non-U.S. holder of U.S. Treasuries, held $1.225 trillion in January, reaching a new high since July 2022, when holdings were $1.231 trillion. Over the past 13 months, Japan’s holdings have increased in 12 months, reflecting the slow normalization of the Bank of Japan’s policies and domestic investors’ continued demand for higher overseas yields.

The UK, the second-largest holder, increased its holdings to $895.3 billion, a 3.4% rise from December.

China is the third-largest holder, with holdings rising from $683.5 billion in December to $694.4 billion in January. Since early 2025, China’s holdings have decreased by 9%, indicating a gradual shift in its investment portfolio away from U.S. assets.

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