Archive · 18 Aug 2026
Foreign Treasury Holdings Fell in June, Led by Japan Drop
Countries sometimes buy special savings bonds from the United States government.
These bonds are called US Treasuries.
In June, the total amount of these bonds owned by other countries went down.
It fell by $72.1 billion to $9.3 trillion.
Japan, which owns the most, dropped by about $26.4 billion.
China also reduced its holdings by $25.9 billion.
One reason is that Japan's money, the yen, was getting weaker.
Japan wanted to make the yen stronger, so it used some of its money.
The United States even helped Japan in July.
Experts think Japan will not need to sell more US bonds to help its money.
Foreign holdings of US Treasuries fell by $72.1 billion in June to $9.3 trillion, the third decline in four months.
Japan posted the biggest drop, with its holdings down about $26.4 billion to $1.12 trillion.
China's stockpile fell by $25.9 billion to $633.4 billion, the second-largest decline.
The declines came as US government bonds posted losses amid concerns about large budget deficits and above-target inflation.
Treasury Secretary Scott Bessent announced a rare coordinated intervention in late July to support Japan's yen.
- Who
- Japan and China, the largest foreign holders of US Treasuries, along with the US Treasury Department and Treasury Secretary Scott Bessent.
- What
- Foreign holdings of US Treasuries fell by $72.1 billion in June to $9.3 trillion.
- When
- June, with data published on Monday; a coordinated intervention followed in late July.
- Where
- United States, Japan, and China.
- Why
- Japan's yen came under pressure, prompting interventions, while investors worried about large US budget deficits and above-target inflation.
Concern over Japanese selling
Reassurance of no repeat
Japan's Treasuries and the yen
Concern over Japanese selling
Some market-watchers worried Japan might sell its Treasuries to defend the yen, which could push US borrowing costs higher.
Reassurance of no repeat
Paresh Upadhyaya of Pioneer Investments said Japan's decline was due to FX intervention and that Japan can use a Federal Reserve repurchase facility, so no repeat of Japanese selling of Treasuries is expected.
- Total foreign holdings
- $9.3 trillion
- Monthly decline
- $72.1 billion
- Japan's holdings
- $1.12 trillion
- Japan's decline
- $26.4 billion
- China's holdings
- $633.4 billion
- China's decline
- $25.9 billion
- Data source
- US Treasury Department
- Record high
- February, before declines in three of four months