Japan's U.S. Treasury holdings hit their lowest level since December 2024.

Foreign holdings of U.S. Treasuries rebounded in August from the lowest level since October 2025, driven mainly by increased positions in Canada and Belgium. Data released by the U.S. Treasury Department on Friday showed that total overseas holdings rose by more than $83 billion from July to $9.33 trillion. The foreign holdings data includes net purchases and sales as well as valuation changes. The Bloomberg U.S. Treasury Index rose 0.3% in August, before falling on market concerns about stubborn inflation and the Federal Reserve beginning a new round of interest rate hikes. As the largest foreign holder of U.S. Treasuries, Japan's holdings decreased by $36 billion to $1.1 trillion, hitting the lowest level since December 2024. Japanese authorities took measures this summer to support the sharply weakened yen. The country's data last month indicated that Tokyo may have sold some foreign securities, including U.S. Treasuries, to raise funds for an unprecedented scale of foreign exchange intervention. The United Kingdom is the second-largest holder, with its holdings increasing by $11 billion in August, surpassing the $1 trillion mark for the first time.