China, Japan Sold Billions in US Debt in September, New Treasury Data Shows

At a time when the U.S. government is witnessing lackluster domestic interest in bonds, foreign investors are also limiting their exposure to American debt, new data shows. According to the Treasury Department’s monthly TIC report, foreign investment—central banks, financial institutions, and private investors—into U.S. government debt tumbled by approximately $100 billion to $7.605 trillion in September. This includes bonds, notes, and T-bills. Japan, the world’s largest holder of Treasury securities, decreased its stake by $28.5 billion, or 2.55 percent, to $1.087 trillion. This is down nearly 3 percent from the same time a year ago. China continued its steady decline in bond holdings, selling more than $27 billion, or 3.4 percent, to $778.1 billion. Chinese holdings have dropped by about 15 percent over the last 12 months as Beijing attempts to prop up a weakening yuan. Over the last three months, China has sold more than $47 billion, the fastest selling pace for the world’s second-largest economy since 2019....