Japan Extends Lead as Largest Foreign Holder of U.S. Treasuries in September 2025

Japan remained the top foreign holder of U.S. Treasury securities in September 2025, with holdings rising to $1.189 trillion. This marks Japan’s highest level since August 2022, when its Treasury stockpile reached $1.196 trillion. Japan has now increased its U.S. debt holdings for nine consecutive months, reflecting strong demand for safe assets.

China’s Treasury Holdings Continue a Long-Term Decline

China’s position slipped slightly to $700.5 billion in September from $701 billion in August. In July, China’s total fell to $696.9 billion, the lowest since October 2008. The gradual decline shows China’s ongoing diversification away from U.S. debt.

Foreign Investors Boost U.S. Equity Buying

Foreign investors purchased a significant $132.9 billion in U.S. equities in September. This is a sharp jump from $89.4 billion in August and a strong reversal from the $16.2 billion outflow seen in July.

Net Capital Inflows Strengthen

The United States recorded a net capital inflow of $190.1 billion in September, up from $187.1 billion in August. July had posted a net capital outflow of $6.6 billion. This steady inflow highlights strong global confidence in U.S. financial markets.

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Full Data: Major Foreign Holders of U.S. Treasuries (June–September 2025)

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Key Highlights

• Japan leads with $1.189 trillion — highest since 2022.
• China declines to $700.5 billion — near 17-year lows.
• Foreign equity inflows jump to $132.9 billion.
• Net capital inflow rises to $190.1 billion.
• Total foreign holdings reach $9.249 trillion.

This report is based on the latest TIC (Treasury International Capital) data.