China Reduces Holdings of US Treasury Bonds by $25.7 Billion in July

On September 18 local time, data released by the U.S. Department of the Treasury showed that in July 2025, among the top three overseas holders of U.S. Treasury bonds, Japan and the United Kingdom increased their holdings, while China reduced its holdings. China’s holdings of U.S. Treasury bonds hit a new low since 2009.

The Treasury International Capital (TIC) report for July 2025 revealed that Japan increased its holdings of U.S. Treasury bonds by $3.8 billion in July, bringing its total holdings to $1,151.4 billion, maintaining its position as the largest creditor of the United States. The United Kingdom increased its holdings by $41.3 billion to $899.3 billion, remaining the second-largest holder. China reduced its holdings by $25.7 billion to $730.7 billion, marking the fourth reduction this year. After this reduction, China’s holdings of U.S. Treasury bonds reached their lowest level since 2009.