China reduced its holdings of US Treasury securities to $652.3 billion in March 2026, down from $693.3 billion in February, marking its lowest level since 2008. China remains the third largest foreign holder of US government debt but has steadily reduced its exposure over the past year as it diversifies reserves and manages currency pressures.
Japan remained the largest foreign holder of US Treasuries with $1.19 trillion, although it sold nearly $47.7 billion during March. The move came amid heightened uncertainty in global markets, rising oil prices, and concerns that Middle East tensions could trigger further volatility in currencies and bond markets.
The United Kingdom strengthened its position as the second largest foreign holder, increasing holdings to $926.9 billion. Other major holders included the Cayman Islands ($459.4 billion), Belgium ($454.0 billion), Canada ($439.4 billion), Luxembourg ($432.0 billion), and France ($393.0 billion). These countries continue to play a significant role in global demand for US government debt.
Among Asian economies, Taiwan ($300.8 billion), Hong Kong ($278.2 billion), Singapore ($274.3 billion), South Korea ($136.8 billion), and Saudi Arabia ($149.6 billion) remained major holders. However, several of these countries either reduced holdings or showed only modest increases as central banks balanced reserve management with currency stabilization efforts.
India’s holdings fell to $183.0 billion in March from $190.6 billion in February, continuing a gradual decline from $239.9 billion a year earlier. Brazil also reduced its holdings to $168.0 billion, while Switzerland ($286.4 billion), Ireland ($355.2 billion), Norway ($217.4 billion), Germany ($112.5 billion) and the United Arab Emirates ($114.1 billion) remained significant investors in US debt markets.
Overall foreign holdings of US Treasuries declined to $9.35 trillion from $9.49 trillion in February. Market analysts say many central banks have been using dollar reserves to support local currencies as higher energy prices and geopolitical tensions put pressure on exchange rates. Brent crude’s rise above $110 per barrel increased concerns about inflation and economic stability, prompting several countries to adopt a more defensive reserve management strategy.
Despite the recent selling, US Treasury securities remain the world’s most important reserve asset. However, the latest data suggest that several major economies are becoming more cautious about increasing their exposure to US government debt amid geopolitical uncertainty, currency volatility, and concerns over long term fiscal deficits in the United States.
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