Japan Cuts US Treasury Holdings by $96 Billion in Three Months
Japan’s holdings of US Treasuries dropped $96 billion over three months to $1.14 trillion, the lowest since April 2025, signaling reduced demand from one of America’s top foreign creditors.
Japan reduced its holdings of US government debt by $96 billion in the past three months, bringing the total to $1.14 trillion. That marks the lowest level since April 2025. The move reflects continued selling by one of the largest foreign holders of Treasuries.
The sharp decline adds to broader concerns about weakening overseas appetite for US sovereign debt. Elevated Treasury yields and growing fiscal deficits are weighing on demand at a time when the US needs more foreign financing.
The data underscores the sensitivity of global capital flows to US fiscal policy and interest-rate dynamics, with Japan’s actions serving as a key signal for other official holders.
Source: First Squawk