U.S. Treasury Department: In June, foreign holdings of U.S. debt decreased by $72.1 billion month-over-month to $9.3 trillion, with Japan leading the reduction by $26.4 billion.
According to data released by the U.S. Treasury Department on Monday, the total amount of U.S. Treasury bonds held by foreign entities decreased by $72.1 billion month-on-month in June, falling to $9.3 trillion. Among these, Japan, the largest overseas holder, reduced its holdings by $26.4 billion to $1.12 trillion; China reduced its holdings by $25.9 billion to $633.4 billion. The market is concerned about the outlook for demand for U.S. Treasury bonds. Previously, in late July, U.S. Treasury Secretary Besant uncharacteristically participated in a coordinated intervention in the foreign exchange market, partly aimed at preventing Japan from massively selling U.S. Treasury bonds to support the yen. Paresh Upadhyaya, a strategist at Pioneer Investments, believes that after the U.S. intervention, the likelihood of Japan further reducing its holdings of U.S. Treasury bonds has significantly decreased.
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