U.S. Treasuries Holdings by Country – June 2026: Japan #1, China #3, South Korea #18
U.S. Treasury bonds are widely regarded as the world’s safest assets and a core pillar of global finance. As of June 2026, the latest data on foreign holdings of U.S. government debt provides valuable insights into international capital flows, dollar dependence, and geopolitical realignments.
Below is the full ranking of the top 20 holders, followed by key takeaways and forward-looking analysis.
📊 Top 20 U.S. Treasuries Holders (June 2026) – Amounts in Billions of USD
|
Rank |
Country /
Territory |
Holdings
(Bn USD) |
|
1 |
Japan |
1,110 |
|
2 |
United
Kingdom |
940 |
|
3 |
China |
633 |
|
4 |
Belgium |
483 |
|
5 |
Canada |
460 |
|
6 |
Cayman
Islands |
453 |
|
7 |
Luxembourg |
434 |
|
8 |
France |
390 |
|
9 |
Ireland |
354 |
|
10 |
Taiwan |
303 |
|
11 |
Switzerland |
285 |
|
12 |
Singapore |
284 |
|
13 |
Hong Kong |
256 |
|
14 |
Norway |
203 |
|
15 |
India |
186 |
|
16 |
Brazil |
168 |
|
17 |
Saudi
Arabia |
143 |
|
18 |
South
Korea |
135 |
|
19 |
United
Arab Emirates |
115 |
|
20 |
Israel |
111 |
🔍 Key Insights from the Data
1. Japan Remains the Undisputed #1
Japan tops the list with $1.11 trillion in U.S. Treasuries. This reflects its long-standing strategy of maintaining large dollar reserves to counter yen volatility, especially given its ultra-loose monetary policy. Japan has held the top spot for years and shows no sign of stepping down.
2. United Kingdom Surges to 2nd Place
The UK now holds $940 billion, overtaking China. London’s status as a global financial hub, combined with active portfolio management by British pension funds and asset managers, explains this upward move.
3. China Continues to Reduce Exposure
China ranks 3rd with $633 billion – significantly down from its historical peak as the largest holder. This decline aligns with Beijing’s broader push to reduce dollar reliance, promote yuan internationalization, and diversify into gold and other currencies amid ongoing U.S.–China tensions.
4. Tax-Haven Jurisdictions Feature Prominently
The Cayman Islands (6th), Luxembourg (7th), and Ireland (9th) are all in the top 10. These are not domestic holdings per se, but rather reflect massive indirect investments by global hedge funds, private banks, and asset managers that use these jurisdictions as conduits for U.S. debt purchases.
5. South Korea Ranks 18th with $135 Billion
South Korea holds $135 billion in U.S. Treasuries, maintaining a stable share of its total foreign exchange reserves. The country’s National Pension Service and commercial banks continue to increase overseas asset allocations, suggesting modest upward pressure on this figure over time.
📈 Trends and Outlook
Strong Dollar Environment: As long as the U.S. dollar remains resilient, demand for U.S. Treasuries is likely to stay robust, especially from surplus countries and commodity exporters.
BRICS De-dollarization Efforts: While nations like China, India, and Brazil have explored alternative settlement mechanisms, the sheer depth and liquidity of the U.S. Treasury market make it irreplaceable in the near term.
South Korea’s Gradual Increase: With growing foreign assets under management and continued trade surpluses, South Korea’s holdings could gradually rise toward the $150–160 billion range over the next few years.
🧾 Final Takeaway
The June 2026 data confirms that U.S. Treasuries remain the bedrock of the global financial system. Despite talk of multipolar currency orders, no other asset class offers the same combination of safety, liquidity, and scale. For Asian economies – including South Korea – U.S. debt continues to play a critical role in reserve management and financial stability.
Going forward, watching shifts in Chinese and British holdings, as well as the growing presence of offshore financial centres, will be key to understanding the evolving dynamics of global capital.
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