Hello?
One of the hottest topics among investors these days is the rise in US Treasury bond yields - now that South Korea and Japan's government bond yields are also rising to a level that cannot be ignored -.
Based on data from the U.S. Department of the Treasury, I checked the changes in U.S. Treasury holdings by major economic countries.
Country | July 2025 (billions of dollars) | July 2026 (billions of dollars) | Change over 1 year (billions of dollars) |
|---|
China | 695.623 | 618.011 | −77.612 |
Germany | 107.013 | 98.167 | −8.846 |
Japan | 1,155.439 | 1,103.943 | −51.496 |
United Kingdom | 895.928 | 998.340 | +102.412 |
India | 219.691 | 202.615 | −17.076 |
France | 390.972 | 348.380 | −42.592 |
Italy | 62.526 | 60.812 | −1.714 |
Russia | 0.038 | 0.025 | −0.013 |
Brazil | 201.791 | 167.991 | −33.800 |
Korea | 132.339 | 131.474 | −0.865 |
As you can see, all countries except the United Kingdom - what are they? - have been reducing their holdings of U.S. Treasuries over the past year.
However, looking at the overall holdings status including major economic countries, it increased by $138.6 billion from $9.1095 trillion to $9.2481 trillion. And if we look only at public sector holdings again, they decreased by $113.4 billion from $3.8865 trillion to $3.7731 trillion.
In other words, governments are reducing their U.S. Treasury holdings and the private sector is buying them up.
Therefore, for US Treasury yields to stabilize now, the bond purchase policies of major economic countries need to change. It seems that we will have to watch after the midterm elections how they will appeal the attractiveness of U.S. Treasuries.
▶ Source: https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt_table5.html
