[2026 Ranking of Countries Holding US Debt] Japan No. 1, China Falls to No. 3... South Korea at No. 18
Introduction: Why the World Buys US Treasuries
US Treasuries are considered one of the safest assets in the global financial market. The fact that central banks, governments, and global financial hubs around the world hold large amounts of US debt goes beyond simple investment—it reflects foreign exchange reserve management, monetary policy, and strategic choices within the global economic order.
Today, we will take a closer look at the data visualized by 'Data in Race' on the top 20 foreign holders of US debt as of June 2026. This ranking highlights the changing positions of Japan, the UK, China, and major financial hubs, serving as an important indicator for reading the dynamics of the global economy.
Analysis of the Top 20 Foreign Holders of US Debt in June 2026
According to the chart provided, the list and scale of the top 20 countries holding US debt as of June 2026 are as follows. This data shows the amount of US Treasuries held by each country in dollars (Trillion, Billion).
1. Japan – Overwhelming No. 1 with $1.11 Trillion
Holdings: $1.11 Tn
Analysis: Japan maintained its overwhelming No. 1 position with $1.11 trillion in US Treasuries as of June 2026. Japan has held the title of the largest foreign holder of US debt for decades, reflecting its massive foreign exchange reserves and close economic ties with the United States.
2. United Kingdom – No. 2 with $940 Billion
Holdings: $940 Bn
Analysis: The United Kingdom ranked second with $940 billion. As a traditional financial powerhouse, the UK holds large amounts of US Treasuries through its role as a global financial hub centered in London. In particular, the UK continues to maintain its influence in the global financial market even after Brexit.
3. China – No. 3 with $633 Billion
Holdings: $633 Bn
Analysis: China ranked third with $633 billion. Once the largest foreign holder of US debt, China has steadily reduced its holdings in recent years, falling to third place. This suggests that China is pursuing a policy of diversifying its foreign exchange reserves.
4. Belgium – No. 4 with $483 Billion
Holdings: $483 Bn
Analysis: Belgium ranked fourth with $483 billion. Belgium serves as a financial hub centered in Brussels, where major European Union (EU) institutions are located, and holds large amounts of US Treasuries through this role.
5. Canada – No. 5 with $460 Billion
Holdings: $460 Bn
Analysis: Canada ranked fifth with $460 billion. Due to its geographic and economic closeness with the United States, Canada utilizes US Treasuries as a stable asset.
6. Cayman Islands – No. 6 with $453 Billion
Holdings: $453 Bn
Analysis: The Cayman Islands ranked sixth with $453 billion. As a global tax haven and financial hub, the Cayman Islands attracts capital from hedge funds and global investors, resulting in high US debt holdings.
7. Luxembourg – No. 7 with $434 Billion
Holdings: $434 Bn
Analysis: Luxembourg ranked seventh with $434 billion. Luxembourg is also a major European financial hub, where cross-border capital flows are actively taking place.
8. France – No. 8 with $390 Billion
Holdings: $390 Bn
Analysis: France ranked eighth with $390 billion. As a core country of the Eurozone, France holds US Treasuries in connection with the policies of the European Central Bank (ECB).
9. Ireland – No. 9 with $354 Billion
Holdings: $354 Bn
Analysis: Ireland ranked ninth with $354 billion. Ireland is home to many European headquarters of multinational corporations due to its low corporate tax rate, and the resulting capital appears to flow into US Treasuries.
10. Taiwan – No. 10 with $303 Billion
Holdings: $303 Bn
Analysis: Taiwan ranked tenth with $303 billion. Taiwan utilizes US Treasuries as a stable investment destination based on its high foreign exchange reserves.
Summary of Countries Ranked 11th to 20th
Rank Country Holdings (June 2026)
11 Switzerland $285 Bn
12 Singapore $284 Bn
13 Hong Kong $256 Bn
14 Norway $203 Bn
15 India $186 Bn
16 Brazil $168 Bn
17 Saudi Arabia $143 Bn
18 Korea, South $135 Bn
19 United Arab Emirates $115 Bn
20 Israel $111 Bn
(Source: Data in Race / As of June 2026)
What the Data Tells Us About the Global Economy
From this ranking, we can draw several important economic implications.
First, Japan's unrivaled position. Japan holds over $1 trillion in US Treasuries, taking an overwhelming first place. This is the result of Japan's massive trade surplus combined with its low-interest-rate policy, demonstrating that Japan plays a key role in the global financial market.
Second, the UK's rise and China's shift. While the UK rose to second place, China fell to third. This is interpreted as China's strategic move to reduce its dependence on US Treasuries and diversify its foreign exchange reserves. On the other hand, the UK is increasing its US debt holdings through London's function as a financial hub.
Third, the influence of financial hubs. The fact that countries with small populations, such as Belgium, the Cayman Islands, Luxembourg, and Ireland, are ranked high shows how important these countries are as gathering points for global capital. These countries are not simply investing their own funds, but attracting capital from investors around the world to invest in US Treasuries.
Fourth, Korea's position. South Korea ranked 18th with $135 billion. This is considered an appropriate level given Korea's foreign exchange reserves and economic size. Korea utilizes US Treasuries for stable foreign exchange reserve management, which contributes to enhancing Korea's credibility in the global financial market.
Conclusion: Lessons from the US Debt Holding Rankings
The 2026 rankings of foreign holders of US debt carry meaning beyond simple numbers. It is like a mirror reflecting each country's economic strategy, foreign exchange policy, and position in the global financial market.
Japan's overwhelming first place, the UK's rise to second, and China's fall to third are important signals predicting changes in the global economic order in the future. Additionally, the presence of financial hub countries shows how dynamically capital flows move beyond borders.
What thoughts come to mind when you see this ranking? The ranking of US debt holders will continue to serve as an important barometer of the global economy.
