The US Treasury Department released the latest data on the 18th, showing that foreign investors’ holdings of US Treasury bonds declined in October this year, despite some countries, including Japan and the UK, increasing their positions. China, ranked third in holdings, reduced its US Treasury holdings by $11.8 billion (RM48.228 billion) in October, bringing it down to $688.7 billion (RM2.81 trillion), which is the lowest level since 2008.
Against the backdrop of China’s massive sell-off of US Treasuries, the total overseas holdings for the month fell by $5.8 billion (RM23.705 billion) to $9.24 trillion (RM37.76 trillion); this data includes net sales and valuation changes. The Bloomberg US Treasury Index, meanwhile, climbed for the third consecutive month in October.
Belgium, regarded by market analysts as the location of China’s custodial accounts, increased its holdings by $1.6 billion (RM6.539 billion) in the same month, reaching $468.4 billion (RM1.91 trillion).
Bloomberg pointed out that, since the start of this year, concerns over overseas sell-offs have brought extra attention to the US Treasury Department’s holdings data. However, US Treasury Secretary Janet Yellen has repeatedly refuted the “selling America” narrative.
Japan is the largest foreign holder of US Treasuries, with its holdings increasing by $10.7 billion (RM43.732 billion) to $1.2 trillion (RM4.9 trillion), the highest level since July 2022.
The UK ranks second, with holdings increasing by $13.2 billion (RM53.95 billion) to $877.9 billion (RM3.58 trillion).
Canada’s holdings, however, plunged by $56.7 billion (RM231.739 billion) to $419.1 billion (RM1.71 trillion). This close neighbor to the US has been both buying and selling heavily this year, with monthly fluctuations of over $50 billion (RM204.355 billion) becoming the norm.