Japan and China divest US government bonds

At the end of September, the United States was indebted with 6.77 trillion US dollars in government securities abroad. Japan sold almost 29 billion US dollars in US government bonds.

The US Treasury has updated its list of foreign creditors. It contains the holders of US government bonds at the end of September 2019.


Japan is now the country with the highest foreign holdings of US debt securities for four consecutive months. However, their dollar exposure recently fell by 28.9 billion US dollars to a volume of 1,145.8 billion US dollars. China’s holdings of US government bonds have now fallen for four months in a row – by another 1.1 billion US dollars to 1,102.4 billion US dollars in September.

 Total foreign holdings of US government bonds amounted to USD 6,776.8 billion at the reporting date. They decreased by 84.3 billion US dollars compared with the previous month. The largest creditor in the United States remains, of course, the U.S. Federal Reserve System. The Fed recently reported US government securities with a volume of 2,980 billion US dollars in its balance sheet. Compared to the previous month, the value fell by 19 billion US dollars.