Friday, 31 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > UK overtakes China as second-largest US Treasury holder
Economy

UK overtakes China as second-largest US Treasury holder

Last updated: May 16, 2025 10:50 pm
Share
UK overtakes China as second-largest US Treasury holder
SHARE

China’s recorded holdings of Treasuries have fallen below those of the UK for the first time since the start of the century, signaling a shift in Beijing’s management of its foreign reserves. According to data published late on Friday, the value of China’s Treasury holdings as recorded by US banks and custodians dropped to $765bn at the end of March, down from $784bn in the previous month. In contrast, the UK saw its holdings rise by almost $30bn to $779bn, making it the second-largest foreign holder of US Treasuries after Japan.

This development marks the first time the UK’s holdings have surpassed those of China since October 2000, highlighting China’s strategic move towards diversifying away from US assets. “China has been selling slowly but steadily; this is a warning to the US,” said Alicia García-Herrero, chief economist for Asia-Pacific at Natixis. “The warning has been there for years, it’s not sudden — the US should have acted on this well before.”

The data serves as a cautionary sign for the US administration, especially following the recent news that Moody’s has downgraded the world’s largest economy from its triple-A credit rating. Beijing has been gradually reducing its holdings of US treasuries since their peak of over $1.3tn in 2011, opting to diversify into other assets like US agency bonds and gold. Market fluctuations may also have contributed to the decline in the value of China’s holdings.

Analysts believe that China may be holding a growing proportion of its US assets through third-party custodians in countries like Belgium and Luxembourg, which could obscure the true level of its holdings. China’s massive Treasury pile is a result of a long-standing trade surplus with the US, a situation that the current administration is working to address. Concerns have been raised over foreign selling of Treasuries, which can drive up yields and increase debt refinancing costs for the US.

See also  Mortgage and refinance interest rates today, October 12, 2025: Best week of the year to buy a house

The UK’s rise in recorded Treasury holdings does not directly correlate to its own reserves, but rather reflects London’s role as a hub for international capital. European entities like insurers, banks, and custodians hold Treasury securities, along with some hedge funds engaging in basis trades. The increase in the UK’s holdings is likely due to global banks holding more Treasuries, the availability of custodial services in London, and hedge fund activities.

The data only captures movements until the end of March, meaning it does not reflect any potential actions taken by China in response to Trump’s recent escalation of the trade war. “It is possible that China could have made significant changes in its reserve management in the last six weeks that will only become clear with more time,” said Brad Setser, a senior fellow at the Council on Foreign Relations and former US Treasury official.

In conclusion, the shift in Treasury holdings between China and the UK underscores China’s strategic diversification of its foreign reserves and poses challenges for the US in managing its debt and trade relationships. These developments will continue to shape the global economic landscape in the coming months.

TAGGED:ChinaholderovertakessecondlargestTreasury
Share This Article
Twitter Email Copy Link Print
Previous Article Scientists Discovered Structural, Brain-Wide Changes During Menstruation : ScienceAlert Scientists Discovered Structural, Brain-Wide Changes During Menstruation : ScienceAlert
Next Article 17 Comfy Thong Sandals That Feel Like a Dream for Blistered Feet 17 Comfy Thong Sandals That Feel Like a Dream for Blistered Feet
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Alexis Bledel Withdraws From Emmys for The Handmaid’s Tale

Alexis Bledel, known for her role as Dr. Emily Malek/Ofglen in the Hulu drama "The…

June 2, 2025

Desperate Diddy Appeals $50Million Bail Denial in Third Bid for Freedom

Sean "Diddy" Combs, the renowned music mogul and entrepreneur, found himself in a precarious situation…

September 30, 2024

What REALLY Happened After Trump Was Shot At Rally

The gunshots heard around the nation at Donald Trump's Butler, Pennsylvania rally will be etched…

March 17, 2025

Will alcohol join MAHA’s list of top health threats?

Robert F. Kennedy Jr. and his allies in the “Make America Healthy Again” movement have…

January 14, 2025

Ranking Women’s Euro semifinalists: World Cup winners Spain lead the pack, Italy punch above weight

The Women's Euro semifinalists have been determined, showcasing a mix of expected powerhouses and surprise…

July 20, 2025

You Might Also Like

Market analysts react to Trump-Xi meet
Economy

Market analysts react to Trump-Xi meet

October 31, 2025
29 truck carrier files Chapter 11
Economy

29 truck carrier files Chapter 11

October 31, 2025
Trust Government Statistics, Not Government
Economy

Trust Government Statistics, Not Government

October 31, 2025
Jefferies Raises BP Price Target to 420 GBp, Maintains Hold Rating
Economy

Jefferies Raises BP Price Target to 420 GBp, Maintains Hold Rating

October 31, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?