Story perspectives

Foreign Nations Slash U.S. Treasuries, China Hits 2008 Low

5/20/2026

Summary

Foreign Governments Trim holdings

Foreign governments cut U.S. Treasury holdings in March as the Iran war intensified, lowering foreign holdings to $9.35 trillion.
China reduced holdings to $652.3 billion, the lowest since September 2008.
Japan shaved $47.7 billion from its stockpile to $1.192 trillion.
The United Kingdom added $29.6 billion to $926.9 billion, becoming the second-largest foreign holder.
Foreign investors lost $142.1 billion on Treasuries as the 30-year yield hit its highest since 2007 and the 10-year its highest since January 2025.

Summary

Foreign Investors Buy

Foreign investors poured $13.5 billion into U.S. Treasuries in March, up from $2.6 billion in February, signaling a rebound.
Corporate bond inflows rose to $76.8 billion in March from $53.9 billion in February.
Equity inflows fell to $10.5 billion in March, down from $23.8 billion in February.
The United Kingdom’s higher Treasury holdings are viewed as a hedge-fund positioning proxy, underscoring its custody-hub role.

History

Historical Context

In September 2008, amid the global financial crisis, China and Japan cut U.S. Treasury holdings, leading central banks to purchase $2.5 trillion of U.S. debt that quarter. Geopolitical tensions in March 2024 similarly spurred foreign investors to reassess Treasury positions, showing how crises repeatedly reshape overall significant demand for worldwide U.S. government bonds.

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Foreign Governments Trim holdings

Foreign governments cut U.S. Treasury holdings in March as the Iran war intensified, lowering foreign holdings to $9.35 trillion.
China reduced holdings to $652.3 billion, the lowest since September 2008.
Japan shaved $47.7 billion from its stockpile to $1.192 trillion.
The United Kingdom added $29.6 billion to $926.9 billion, becoming the second-largest foreign holder.
Foreign investors lost $142.1 billion on Treasuries as the 30-year yield hit its highest since 2007 and the 10-year its highest since January 2025.

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