Japan Reclaims Top Spot as Largest Foreign Holder of U.S. Debt
Tokyo, December 4, 2025
Japan has once again solidified its position as the largest foreign holder of U.S. government debt, maintaining the top rank for the ninth consecutive month, according to the latest data from the U.S. Treasury Department.
As of September 2025, Japanese investors and institutions held $1.189 trillion in U.S. Treasuries — the highest level since August 2022. This marks a steady increase from $1.079 trillion in January 2025, reflecting a rise of approximately $110 billion over nine months.
Throughout 2024 and early 2025, many market analysts expected Japan to reduce its holdings due to the weak yen, rising global interest rates, and domestic financial pressures. Earlier this year, some Japanese banks — notably Norinchukin Bank — sold around $63 billion in foreign bonds (including U.S. and European debt) to strengthen their balance sheets, which sparked widespread rumors and viral claims that “Japan is dumping U.S. debt.”
However, official data tells a different story: the Japanese government and the Bank of Japan did not sell any Treasuries. On the contrary, overall holdings have consistently grown.
This continued buying has important implications:
The United States benefits from a reliable major buyer of its debt amid rising fiscal deficits.
The U.S. dollar has remained stronger than many had predicted.
Japan’s steady demand helps stabilize global bond yields at a time when other countries (including China) have trimmed their Treasury holdings.
In short, far from exiting the U.S. debt market, Japan has quietly doubled down — reinforcing its role as a pillar of stability in the global financial system.
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