Global Holdings of US Treasuries in 2025: Mapping the Landscape and Market Implications

The Scale of America’s Debt Obligation

The United States currently carries a national debt of approximately $36.2 trillion. To contextualize this figure, consider that the aggregate net worth of American households exceeds $160 trillion—nearly five times the national debt level. While the absolute numbers appear staggering, when evaluated against the nation’s total wealth and the world’s largest capital markets, the debt burden presents a more nuanced picture than headlines often suggest.

Which Nations Hold the Most US Treasuries?

The landscape of foreign Treasury holdings tells a compelling story, particularly regarding China holding of US treasuries and the broader distribution of debt ownership. As of April 2025, three nations dominate the list:

• Japan leads with $1.13 trillion in holdings
• United Kingdom holds $807.7 billion
• China maintains $757.2 billion

China holding of US treasuries has evolved significantly. Once the second-largest holder, China has systematically reduced its position over recent years, with the United Kingdom now occupying the number two spot. Following these three major holders, the Cayman Islands, Belgium, and Luxembourg round out the top tier with holdings between $410-448 billion each.

The remaining major holders include Canada ($368.4B), France ($360.6B), Ireland ($339.9B), Switzerland ($310.9B), Taiwan ($298.8B), Singapore ($247.7B), Hong Kong ($247.1B), India ($232.5B), Brazil ($212.0B), Norway ($195.9B), Saudi Arabia ($133.8B), South Korea ($121.7B), United Arab Emirates ($112.9B), and Germany ($110.4B).

The Real Ownership Picture

A critical misunderstanding pervades public discourse: the belief that foreign nations control a majority of US debt. The reality diverges significantly. As of early 2025, all foreign countries collectively own approximately 24% of outstanding US Treasury debt. Americans themselves hold 55%, while federal agencies including the Federal Reserve and Social Security Administration control the remaining 21%.

This fragmentation matters substantially. No single nation wields disproportionate leverage. China’s gradual reduction of holdings illustrates this dynamic—liquidation has occurred without triggering market disruptions or excessive influence over US fiscal conditions.

Market Dynamics and Your Financial Reality

The treasury market remains among the world’s most stable and liquid government securities markets. Foreign ownership fluctuations primarily affect interest rate dynamics rather than household finances directly.

When foreign demand declines, upward pressure on yields typically follows. Conversely, increased international buying creates downward pressure on rates. Yet these mechanisms operate within broader market forces—currency movements, Federal Reserve policy, and domestic economic conditions exert equal or greater influence.

The bottom line: despite geopolitical tensions and legitimate fiscal concerns, foreign investment in US debt—including the China holding of US treasuries—reflects confidence in American market stability rather than concentrated foreign control over the nation’s economic destiny.