Japan, China, UK Boost U.S. Treasury Holdings by 20%

In February 2025, the three largest foreign holders of U.S. debt—Japan, China, and the United Kingdom—all increased their holdings of U.S. Treasury securities. Japan led the way with an increase of $466 billion, bringing its total holdings to $11,259 billion. China followed with an increase of $235 billion, raising its holdings to $7,843 billion. The United Kingdom also increased its holdings by $101 billion, reaching $7,503 billion.

This increase in holdings by the three major foreign creditors reflects a continued confidence in the U.S. Treasury market. Japan remains the largest foreign holder of U.S. debt, followed by China and the United Kingdom. The increase in holdings by China is particularly notable, as it marks the second consecutive month of increased investment in U.S. Treasuries by the region. This trend suggests that despite geopolitical tensions, China continues to view U.S. debt as a stable and attractive investment.

The increase in holdings by the United Kingdom is also significant, as it indicates a growing appetite for U.S. debt among European investors. The United Kingdom's holdings of U.S. debt have been steadily increasing over the past few years, and this latest increase suggests that this trend is likely to continue.

Overall, the increase in holdings by the three major foreign creditors is a positive sign for the U.S. Treasury market. It indicates that despite concerns about the U.S. fiscal deficit and the potential for rising interest rates, investors remain confident in the stability and liquidity of U.S. debt. This confidence is likely to continue to support the U.S. Treasury market in the months and years ahead.