Holdings fell to $1.14 trillion, the lowest since April 2025, while China continued reducing its exposure to U.S. government debt.
Japan reduced its U.S. Treasury holdings by $96 billion over the past three months, bringing the total to $1.14 trillion, the lowest level since April 2025. China also continued trimming its portfolio as part of a longer-term move away from U.S. debt. The shift points to sustained changes in demand from two of the largest foreign holders of Treasuries, a market that helps finance the U.S. government and anchors global borrowing costs.