Japan and China Reduce US Treasury Holdings Amid Reserve Management
Japan's holdings of US Treasuries fell by $96 billion over three months to $1.14 trillion, the lowest since April 2025, while China's holdings rose slightly but remain near post-crisis lows.
Japan and China, the two largest overseas holders of US government debt, have continued to actively manage their foreign exchange reserves, with notable reductions in US Treasury holdings.
Japan's holdings dropped by $96 billion over the past three months to $1.14 trillion, the lowest level since April 2025. The decline included a $67 billion reduction in May alone, the largest monthly drop since September 2022, as Tokyo sold Treasuries to support the yen.
China's holdings edged up $8 billion in May to $659 billion, but remain near post-Global Financial Crisis lows and are down $98 billion over the past year.
Source: First Squawk