Japan, China Led Declines in Foreign Holdings of Treasuries in March
By Reuters | 18 May, 2026

Japan holdings fell 4% $1.192 trillion but it remained the biggest non-holder of US Treasuries, while China's Treasuries dropped 6% to $652.3 billion, keeping it in 3rd place behind the UK.

Foreign holdings of U.S. Treasuries slid in March, data from the Treasury Department showed on Monday, led by declines in holdings from Japan and China.

Holdings of U.S. Treasuries slipped 1.5% to $9.348 trillion from a record peak of $9.487 trillion seen in February. Compared to a year earlier, Treasuries owned by foreigners were up 3.3%.

Here are some details:

* Japan holdings fell to $1.192 trillion, down nearly 4%, from February's level of $1.239 trillion. It remained the biggest non-holder of U.S. Treasuries, with holdings hitting a peak of $1.325 trillion in November 2021.

* China's stash of Treasuries dropped 6% to $652.3 billion in March from $693.3 billion in the previous month. March's China holdings were the lowest since September 2008, when holdings tumbled to $618.2 billion.

* China is still the third-largest non-U.S. owner of Treasuries, but its holdings have declined by more than 14% since the beginning of 2025.

* The United Kingdom, the second-largest foreign holder of Treasuries, showed a 3.3% increase in holdings to $926.9 billion in March from $897.3 billion in February. The UK is widely viewed as a major custody hub for global investors and flows there are often seen as a proxy for hedge fund positioning.

* On a transaction basis, March saw Treasury inflows of $13.5 billion, up from $2.6 billion in February.

* U.S. corporate bonds posted inflows of $76.8 billion in March, up from $53.9 billion the previous month.

* U.S. equities also tracked inflows of $10.5 billion in March, but down from $23.8 billion in February.

* Overall net capital inflows for March were $150.7 billion, compared with $182.7 billion in February.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Mark Porter)