JUNE 2019: Japan Takes Lead to Become Largest Foreign Holder of US Treasury Securities

Posted on 08/27/2019

The U.S. Department of the Treasury released Treasury International Capital (TIC) data for June 2019. Japan has surpassed mainland China as the largest foreign holder of U.S. Treasury securities at June 2019, according to U.S. Treasury data. Entities in Japan, which include pension funds and trust banks, held US$ 1,112,900,000,000 in US Treasury securities at June 2019 versus mainland China entities, including the China’s central bank, at US$ 1,112,500,000 and Hong Kong at US$ 215,600,000,000.

Compared to a year ago at June 2018, Japan held US$ 1,032,500,000,000 versus mainland China at US$ 1,191,200,000,000 and Hong Kong at US$ 196,400,000,000.

Compared to two years ago at June 2017, Japan held US$ 1,111,500,000,000 versus mainland China at US$ 1,102,200,000,000 and Hong Kong at US$ 189,400,000,000.

Key Yield Curve Inverts to Lowest Level Since 2007

On another note, on August 27, 2019, long-term Treasury rates kept sliding down. The 10-year yield on U.S. Treasuries is at its lowest level against the benchmark 2-year Treasury note since 2007. Furthermore, the 30-year bond yielded 1.961% on the 27th. Foreign flows of money is helping drive the shape of the yield curve.