According to the latest data released by the U.S. Treasury Department, China has reduced its holdings of U.S. Treasury bonds for three consecutive months. This time, China reduced its holdings of US Treasuries by another $7.6 billion in March. China's holdings have fallen to a 15-year low!
Japan, on the other hand, continued to increase its holdings of U.S. Treasuries in March. The largest country in the U.S. Treasury increased by $19.9 billion in March and now holds a whopping $1.19 trillion in U.S. Treasury bonds! It is about 1.5 times that of China's holdings. The United Kingdom, the third-largest holder of U.S. Treasuries, also increased by $26.8 billion. to $728.1 billion, also a record high.
It seems that it is only a matter of time before China is overtaken by the United Kingdom, both of which are good servant partners of the United States and vigorously hold US Treasury bonds. In order to cope with political and international diplomatic risks, China chose to reduce its holdings of US Treasury bonds for three consecutive months because of its own considerations. Keep in mind that the yield on the benchmark 10-year Treasury note fell by 5 basis points in March.
In March, international investors increased their holdings of U.S. Treasuries by as much as $119.9 billion.