As of late 2025 and early 2026, Japan is the largest foreign holder of U.S. Treasury bonds, with holdings exceeding $1.1 trillion. While Japan leads among foreign nations, the Federal Reserve is the overall largest holder of Treasury securities, though it has been reducing its holdings. Other major foreign holders include the United Kingdom and China.
Japan is currently the largest foreign holder of U.S. Treasuries, with holdings rising to $1.13 trillion in March 2025, up from $1.059 trillion in December 2024. Japan's purchases have increased for at least two consecutive months, signaling continued confidence in U.S. debt and its long term trading relationship.
Japan remained the biggest non-U.S. holder ?of Treasuries with $1.2 trillion in October, its biggest holdings since July 2022, when its stash of U.S. government debt hit $1.231 trillion.
The Federal Reserve, which purchases and sells Treasury securities as a means to influence federal interest rates and the nation's money supply, is the largest holder of such debt.
Danish pension operator AkademikerPension said Tuesday it was selling $100 million in U.S. Treasurys. The decision was driven by "poor [U.S.] government finances," said Anders Schelde, AkademikerPension's investing chief.
If China sold all its U.S. Treasuries, it would likely increase U.S. borrowing costs, weaken the dollar, destabilize global markets, and potentially boost U.S. exports, while also significantly hurting China's own assets and financial stability, making it a mutually damaging "nuclear option" that most analysts deem unlikely, as China has already been reducing its holdings gradually. The U.S. Treasury market is vast and deep, so the impact would depend on how other investors absorb the supply, but higher U.S. interest rates for mortgages, business loans, and government debt would be expected.
Individuals, organizations, fiduciaries, and corporate investors may buy Treasury securities through a bank, broker, or dealer. With a bank, broker, or dealer, you may bid for Treasury marketable securities non-competitively or competitively, but not both, for the same auction.
China cuts US debt to lowest level since 2008 China trims nearly 10% of US bonds in a year Japan remains top US debt holder at $12 trillion Jyotsna Kumar tells you more.
Buffett's Massive Bet on Treasury Bills
The bulk of Berkshire's cash hoard -- approximately $314 billion -- is invested in U.S. Treasury bills, short-term government debt instruments known for their safety and liquidity.
Annual totals are based on data from April of each year. Inflation adjusted to the 2023 calendar year. As of April 2024, the five countries owning the most US debt are Japan ($1.1 trillion), China ($749.0 billion), the United Kingdom ($690.2 billion), Luxembourg ($373.5 billion), and Canada ($328.7 billion).
From a national perspective, China buys U.S. debt due to its complex financial system. The central bank must purchases U.S. Treasuries and other foreign assets to keep cash inflows from causing inflation.
TreasuryDirect.gov is the one and only place to electronically buy and redeem U.S. Savings Bonds. We also offer electronic sales and auctions of other U.S.-backed investments to the general public, financial professionals, and state and local governments.
Tax benefits: The interest income from Treasury bonds is subject to federal income tax but is exempt from state and local income taxes. This can be particularly beneficial for investors in high-income tax states, as it allows them to avoid additional taxation on their interest income.
China owns approximately $859.4 billion in U.S. debt, about 2.6% of the total U.S. debt. Japan surpasses China as the top foreign holder of U.S. debt, with $1.1 trillion. The U.S. government itself holds the largest portion of U.S. debt, primarily through trust funds.
Amid global gold rush, India and China are dumping US treasuries. Central banks, led by India and China, are significantly reducing US Treasury holdings and increasing gold reserves. This strategic shift reflects a move towards diversification and risk management amid global economic and geopolitical uncertainties.
If the US defaults. there is no safe place to put your US Dollars. The alternatives are commodities (gold,silver,collectibles) or possibly foreign currencies (euro,pound,etc). But really, if the US defaults the best assets you'll have would be canned goods and ammunition.
Treasury securities are considered one of the safest investments because they are backed by the U.S. government. They're issued in different maturities, ranging from a few days to 30 years, allowing investors to choose the term that best fits their investment goals.
We sell Treasury Bonds for a term of either 20 or 30 years. Bonds pay a fixed rate of interest every six months until they mature. You can hold a bond until it matures or sell it before it matures.