The U.S. Department of the Treasury released data showing that in March 2025, among the top three foreign holders of U.S. Treasury securities, Japan and the UK increased their holdings, while China reduced its holdings. This shift resulted in China moving from the second-largest to the third-largest holder, with the UK taking the second position. This period coincided with market volatility in U.S. Treasuries.
According to the Treasury’s International Capital (TIC) report, Japan increased its holdings by $4.9 billion, reaching a total of $1.1308 trillion, maintaining its position as the largest holder. Meanwhile, China reduced its holdings by $18.9 billion to $765.4 billion, marking its first reduction this year. Since April 2022, China’s holdings have remained below $1 trillion, generally showing a downward trend.
In March, the UK increased its holdings by $29 billion to $779.3 billion, moving from third to second place. The report also indicated a total net inflow of $254.3 billion into U.S. long-term and short-term securities and banking flows, with overseas private funds contributing $259.2 billion and official funds showing a net outflow of $4.9 billion.