China and Japan, the world’s two largest holders of U.S. debt, increased their holdings of Treasury securities in February, new government data show.
According to the latest Treasury International Capital System report released on April 16, foreign holdings of U.S. Treasury securities increased by 3.4 percent to a record $8.817 trillion in February. This is up 10.2 percent, or $818 billion, from a year ago.
Japan, the largest owner, added more than 4 percent to a 10-month high of $1.125 trillion.
China’s stockpile rose by about $24 billion, more than 3 percent, to $784.3 billion, the highest level since June 2024. This was Beijing’s second consecutive month of adding to its holdings, a tepid reversal of its long-term initiative to diversify its portfolio away from U.S. dollar assets….