Japan has consolidated its lead as the country holding most U.S. treasuries. It overtook runner-up China in June and as of October is solidly ahead of its neighbor. While Japan held around $1.17 trillion in U.S. treasuries, China’s treasury bills were worth only 1.10 trillion.
Both China and Japan hold many more U.S. treasury securities than any other country. The UK, which placed third, held only approximately $334 million, overtaking Brazil, which had $299 billion in its possession in October.
U.S. treasury bills have been highly attractive to foreign investors due to U.S. interest rates currently being higher than elsewhere despite recent Fed rate cuts. The foreign interest in the U.S. financial market has also strengthened the dollar against other currencies, much to the chagrin of President Trump. Japan’s own government bonds, at least longer running ones, currently fetch negative yields, causing investors to look elsewhere in droves.