Japan reduced its U.S. Treasury holdings by approximately $47 billion in March, bringing foreign investors’ total holdings down to $9.25 trillion.

The latest U.S. data shows that foreign investors collectively reduced their holdings of U.S. Treasury securities in March 2026, with total holdings declining from $9.49 trillion in February to $9.25 trillion. Japan reduced its holdings by approximately $47 billion that month, bringing its total to $1.191 trillion; the United Kingdom, meanwhile, increased its holdings by about $29.6 billion, raising its total to $926.9 billion. The report notes that the U.S.-Iran conflict drove up oil prices and inflation expectations, prompting central banks in multiple countries to sell dollar-denominated assets to stabilize their exchange rates—thereby accelerating the sell-off of U.S. Treasuries. During the same period, foreign investors incurred an estimated valuation loss of approximately $142.1 billion on their long-term U.S. Treasury holdings.