Japan Is on Track to Replace China as the Largest Foreign Holder of U.S. Treasurys

They say in 4 months they surpass China as the top foreign holder of U.S. Treasury.


When you think of demand for U.S. Treasurys, two entities immediately come to mind: the U.S. Federal Reserve and China. However, over the past year, the Fed has kept its holdings flat and China has been quietly selling off a lot of its stake in U.S. paper.

But if Treasurys are being bought up (which they are) while the Fed keeps flat and China sells, who’s doing all the buying?

If you guess Japan, then you’re a winner.

“That’s right, as the chart below shows using TIC [Treasury International Capital] data, even as China was quietly selling its paper (and that accounts for UK holdings, aka Chinese offshore operations) in the beginning of the year, taking its total from over $1.3 trillion to $1.15 trillion in December … it was Japan who quickly stepped in to fill the void,” Zero Hedge reports.

Indeed, while China has quietly reducing its holdings in U.S. Treasury notes, Japan has been buying them up in a big, big way.


[link to www.theblaze.com]