Japan just pulled nearly $30B out of US bonds in a single quarter.
Japanese investors sold a net ¥4.67 trillion, roughly $29.6 billion, in US government, agency, and municipal bonds during the first quarter of 2026. It’s the largest quarterly reduction in nearly four years, and the pace of selling only accelerated as the quarter progressed.
The selling picked up speed fast
Sales surged to ¥3.42 trillion in February before jumping again to ¥4.12 trillion in March, suggesting that whatever is driving this trade, Japanese institutions are leaning into it harder with each passing month.
Japan holds approximately $1.203 trillion in US Treasuries. That’s about 13% of all foreign-held US debt, making it the single largest foreign holder.
