Foreign Official U.S. Treasury Holdings Fall $233 Billion in Four Months, Led by Japan and China

Foreign official holdings of U.S. Treasuries have fallen by $233 billion over the past four months, led by Japan and China, according to a poster who linked the decline to tensions from the Iran war. Japan's UST holdings alone fell by $123 billion over the period, accounting for more than half of the total decline in foreign official holdings.
The poster argued this is why Treasury Secretary Bessent wants to expand debt buybacks to prevent further UST selling, and warned that the longer the Strait of Hormuz remains closed, the more countries may sell USTs, pushing Bessent toward more aggressive intervention.