I do not have much access to this as I am not a Bloomberg subscriber. Just the headlines plus.
Japan for decades has had more of our US Treasuries than China. But Americans are very prejudice and never take to the time to know anything when prejudiced.
Japan has been riding perennially at 9% of our debt while China has maintained an 8% ownership of our debt.
We do not know what US and EU financials hold of the massive Chinese public and private debts. This will be a massive emergency later this year as the Chinese instruments and the global swap market crumble.
Foreign owners of U.S. Treasuries buy and sell regularly. The changes are like the waves on the surface of the ocean.
Both China’s and Japan’s holding fell from February to March but not by a huge amount. So did the total. But I don’t think that establishes a trend yet.
If foreign buyers stop buying U.S. Treasuries then interest rates will rise. But the total is only $4 Trillion out of the total $23.2 trillion outstanding so a small change from foreign buyers won’t have a large impact.
The article explained the costs involved for Japanese institutions as the Yen depreciates and the USD appreciates. That is what is festering for the Japanese institutions. The article then states as US yields rise global investment will rise. My opinion that in turn means more appreciation of the USD.
bonds will be bought but the question is at what price…Interest rates have been cheap for a long time…save your cash…should be some bargains showing up…