Introduction
Foreign investors held a substantial share of U.S. Treasury securities in March 2025, with Japan remaining the largest holder at approximately $1.13 trillion, followed by the United Kingdom at $779.3 billion and China at $765.4 billion.
The data comes from the U.S. Department of the Treasury’s Treasury International Capital (TIC) system, which publishes monthly estimates of major foreign holdings of U.S. Treasury securities. The figures are commonly described as countries “holding U.S. debt,” although that terminology requires an important qualification: the Treasury data measures securities attributed to foreign holders through custodial reporting and does not necessarily mean that each country’s government directly owns the securities. U.S. Department of the Treasury
The distinction is particularly important for financial centers such as the Cayman Islands, Luxembourg and Belgium, which appear high in the ranking. Treasury cautions that custodial arrangements can cause securities owned by investors in one country to be recorded under another jurisdiction. U.S. Department of the Treasury
What Does It Mean to Hold U.S. Debt?
In this context, “U.S. debt” refers primarily to U.S. Treasury securities held by foreign residents and attributed to particular countries or jurisdictions.
Treasury’s monthly TIC data includes holdings of Treasury bills, notes and bonds. As of March 2025, total foreign holdings of Treasury securities in the Treasury’s major-holder table stood at approximately $9.052 trillion. Foreign official holders accounted for about $3.923 trillion of that total, with the remainder held by other foreign investors. U.S. Department of the Treasury
The figures therefore encompass more than government reserves. Private financial institutions, investment funds, companies and other investors can also hold U.S. Treasury securities.
Government Ownership vs. Foreign-Country Attribution
A country’s position in the table should not automatically be interpreted as the amount of U.S. debt owned by that country’s government.
Treasury states that the monthly holdings data is collected primarily through custodians. If an investor from one country holds a Treasury security through a financial institution in another country, the security can be attributed to the custodial jurisdiction rather than the investor’s actual home country. U.S. Department of the Treasury
That limitation is particularly relevant when comparing financial centers with countries that maintain large official foreign-exchange reserves.
Top 20 Countries and Jurisdictions Holding U.S. Treasury Securities
| Rank | Country / Jurisdiction | Amount Held, March 2025 |
|---|---|---|
| 1 | Japan | $1.13 Trillion |
| 2 | United Kingdom | $779.3 Billion |
| 3 | China | $765.4 Billion |
| 4 | Cayman Islands | $455.3 Billion |
| 5 | Canada | $426.2 Billion |
| 6 | Luxembourg | $412.4 Billion |
| 7 | Belgium | $402.1 Billion |
| 8 | France | $363.1 Billion |
| 9 | Ireland | $329.3 Billion |
| 10 | Switzerland | $311.6 Billion |
| 11 | Taiwan | $297.8 Billion |
| 12 | Hong Kong | $262.9 Billion |
| 13 | Singapore | $262.7 Billion |
| 14 | India | $239.9 Billion |
| 15 | Brazil | $208.4 Billion |
| 16 | Norway | $200.1 Billion |
| 17 | Saudi Arabia | $131.6 Billion |
| 18 | South Korea | $125.8 Billion |
| 19 | Germany | $111.4 Billion |
| 20 | United Arab Emirates | $104.4 Billion |
Source: U.S. Department of the Treasury, Treasury International Capital data. Data date: March 2025. The displayed figures follow the supplied dataset. Treasury’s published monthly table reports holdings in billions of dollars and may differ slightly because of rounding and subsequent revisions. U.S. Department of the Treasury
Japan Remained the Largest Foreign Holder
Japan ranked first, with approximately $1.13 trillion in U.S. Treasury securities in March 2025.
The official Treasury monthly table reports Japan’s March 2025 holdings at $1,135.1 billion. That was substantially higher than the holdings attributed to the United Kingdom and China. U.S. Department of the Treasury
Japan’s position reflects the country’s large financial relationship with the United States and the role of U.S. dollar assets in international investment and reserve management.
The ranking should not, however, be interpreted as a measure of Japan’s government holdings alone. The Treasury’s methodology includes foreign holdings attributed through the international custody system. U.S. Department of the Treasury
The United Kingdom and China Were Closely Positioned
The United Kingdom ranked second with $779.3 billion, while China ranked third with $765.4 billion in the supplied March 2025 data.
Treasury’s published table records March holdings of approximately $779.2 billion for the United Kingdom and $765.4 billion for mainland China. U.S. Department of the Treasury
The figures illustrate the changing composition of foreign Treasury ownership. Japan remained clearly ahead, while the United Kingdom and China were separated by only a relatively small amount.
The United Kingdom’s position also needs to be considered in light of London’s role as a global financial center and the Treasury’s warning that custody arrangements can affect country attribution.
Financial Centers Account for Several Large Positions
Some of the largest positions belong to jurisdictions that are major international financial centers.
The Cayman Islands ranked fourth with $455.3 billion in the supplied data. Luxembourg ranked sixth with $412.4 billion, while Belgium ranked seventh with $402.1 billion.
These numbers do not necessarily mean that the governments or residents of those jurisdictions ultimately own the full amounts attributed to them.
Treasury explicitly warns that custodial data cannot identify the beneficial owner of every security with complete accuracy. A foreign investor can hold a U.S. Treasury security through a custodian located in another jurisdiction, affecting the geographic attribution. U.S. Department of the Treasury
This is one reason financial analysts generally treat the table as a measure of foreign holdings by reported jurisdiction, rather than a precise ranking of national governments by their direct ownership of U.S. debt.
Canada, Europe and Asia Also Have Large Holdings
Canada ranked fifth with $426.2 billion, followed by Luxembourg, Belgium and France.
France held $363.1 billion, while Ireland and Switzerland held $329.3 billion and $311.6 billion, respectively.
Asian financial markets also represented substantial positions. Taiwan was listed at $297.8 billion, Hong Kong at $262.9 billion, Singapore at $262.7 billion and India at $239.9 billion.
The geographic distribution demonstrates the global role of U.S. Treasury securities as highly traded dollar-denominated assets.
How Foreign Investors Use U.S. Treasury Securities
Foreign investors can hold Treasuries for several reasons, including liquidity, portfolio diversification, reserve management and the need to hold dollar-denominated assets.
For official institutions, Treasuries can form part of foreign-exchange reserve portfolios. Private investors can use them as fixed-income investments or as part of broader institutional portfolios.
The motivations vary significantly between countries and between official and private investors. The monthly TIC holdings table does not provide enough information to determine the investment purpose of every position.
Why Foreign Demand for Treasuries Matters
Foreign ownership is an important component of the market for U.S. government securities.
The Treasury Department reported that foreign residents increased their holdings of U.S. Treasury bills by $98.3 billion in March 2025. It also reported that foreign residents increased their holdings of long-term U.S. securities during the month, with net purchases of $183.2 billion. U.S. Department of the Treasury
Foreign participation can influence the market for Treasury securities and therefore matters for understanding U.S. government financing and global capital flows.
However, the monthly holdings figures should not be treated as a direct measure of foreign demand during a particular month. Changes in reported holdings can reflect purchases, sales, valuation movements and changes in custody arrangements.
Risks and Limitations of the Data
The largest limitation is country attribution.
Treasury states that TIC holdings data provides a window into foreign ownership but cannot attribute securities to individual countries with complete accuracy. Securities held through third-country custodians can be recorded under the custodian’s jurisdiction, while foreign private portfolio managers can also complicate the attribution of ownership. U.S. Department of the Treasury
Another consideration is the difference between official and private ownership. A country appearing near the top of the table does not mean its central bank or government owns the entire reported amount.
The figures also represent holdings at a specific point in time. Treasury securities are actively traded, meaning holdings can change from month to month.
Finally, the term “U.S. debt” can be broader than the securities captured in this particular table. The ranking specifically concerns U.S. Treasury securities, rather than every financial liability of the U.S. government.
March 2025 in Context
The Treasury’s March 2025 data shows that foreign holdings of Treasury securities were distributed across a wide range of countries and financial jurisdictions.
Japan’s position exceeded $1 trillion, while the United Kingdom and China each held more than $750 billion. Several other jurisdictions had holdings above $400 billion, demonstrating the depth of international participation in the Treasury market. U.S. Department of the Treasury
The distribution also shows why rankings based solely on country names can be misleading. Some entries represent major economies, while others are international financial centers through which assets owned by investors elsewhere may be held.
Future Outlook for Foreign Holdings of U.S. Treasuries
Foreign holdings of U.S. Treasuries can change as governments manage reserves, institutional investors adjust portfolios, exchange rates fluctuate and global interest-rate conditions change.
The Treasury’s monthly TIC releases provide a continuing record of these movements. Because holdings can change materially over time, a March 2025 ranking should be regarded as a historical snapshot rather than a permanent ordering of foreign Treasury ownership.
Treasury also publishes longer-term data and annual surveys designed to provide additional information about foreign portfolio holdings. These sources can help distinguish broader foreign investment patterns from the monthly custodial data. U.S. Department of the Treasury
Conclusion
Japan was the largest foreign holder of U.S. Treasury securities in March 2025, with approximately $1.13 trillion, followed by the United Kingdom at $779.3 billion and China at $765.4 billion.
The top 20 also included major economies such as Canada, France, India, Brazil, Saudi Arabia, South Korea and Germany, as well as international financial centers including the Cayman Islands, Luxembourg, Belgium, Ireland, Hong Kong and Singapore.
The most important qualification is that these figures represent Treasury securities attributed to foreign holders through the TIC reporting system, not necessarily the amount of U.S. government debt directly owned by each country’s government. Treasury itself cautions that custodial arrangements make precise country-by-country attribution difficult.
