In recent years, China and Japan's holdings of U.S. Treasury bonds have been decreasing, resulting in an increase in the overall size of U.S. Treasury bonds. Although the Fed was once seen as the largest receiver of US Treasuries, the reality shows that the Fed is also ** US Treasuries. So, who will take over the new US Treasury bonds?In fact, the majority of U.S. Treasury bonds are held by U.S.-based companies, individuals, and sectors. Among them, the largest receivers are American households and individuals, who have bought more than 70% of the newly issued US Treasuries.
China has now become the second-largest holder of U.S. Treasury bonds after Japan. However, in recent years, the competition between China and the United States has become increasingly fierce, which has led to a massive sell-off of US Treasuries in China. China's holdings of U.S. Treasury bonds have been declining due to rising tariffs and attempts by the United States to use an age-reining technique called "Wright" to cut leeks. However, according to the latest data, China is no longer the largest receiver of US Treasuries, but American households and individuals. This highlights China's disinterest in U.S. Treasuries and the desire of U.S. households and individuals to hold them.
In addition to China, Japan is also in the US Treasury bonds. As the largest holder of U.S. Treasury bonds, Japan has also sold off a large number of U.S. Treasury bonds since last year. But it's worth noting that the overall size of U.S. Treasuries is growing, despite the sell-off in several countries around the world. This raises the question of who will take over the new US Treasury bonds
According to the data, overseas holdings of U.S. Treasury bonds account for only 24% of the total U.S. debt issued. This means that the majority of U.S. Treasuries are actually held by U.S.-based companies, individuals, and sectors. Currently, U.S. households and individuals are the largest receivers, buying more than 70% of the newly issued U.S. Treasuries. In addition, the Federal Reserve is also in the US Treasury bonds, which have exceeded $840 billion in the past year.
In addition to yield considerations, the main reason for China's sell-off of U.S. Treasuries is to gain more reserves. At present, China's foreign exchange reserves account for only 46%, while the United States' foreign exchange reserves account for 663%。In order to close this gap, our country continues to ** US Treasury bonds in exchange for more ** reserves. It is understood that 267 tons will arrive in China in the future, and China's **reserves have increased for 12 consecutive months, including an additional 740,000 ounces ** in October.
As U.S. Treasuries continue to raise interest rates, there is a huge risk that their highly leveraged nature could lead to a crisis at any time. As a result, international expectations for US Treasuries are not optimistic. At the same time, the decline in domestic and foreign holdings of U.S. Treasuries has also exacerbated the instability of U.S. Treasuries. In light of this, the United States has been trying to stabilize several major creditor countries to avoid a US Treasury crisis.
Summary: Through the analysis of U.S. bond holdings, we can see that since China and Japan's U.S. bonds, U.S. domestic companies, individuals and departments have become the largest receivers of U.S. bonds. This situation illustrates that the reasons for China's U.S. bonds are manifold, not only because of increased competition and yield considerations, but also because of the desire for reserves. At the same time, the future of US Treasuries is not promising, and its highly leveraged nature could lead to a crisis. As a result, the international community is concerned about the decline in the proportion of US Treasury bonds, while the US is trying to stabilize its major creditors in order to avoid a crisis in US Treasury bonds.