In March, China reduced its holdings of US Treasuries by $18.9 billion, lowering its position to third place, while the UK rose to second place.

Data released by the US Treasury on May 16, local time, shows that in March 2025, Japan and the UK increased their holdings of US Treasury securities among the top three foreign creditors, while China reduced its holdings. China went from being the second largest creditor of the US to the third largest, with the UK becoming the second largest creditor. March coincided with the eve of the turmoil in the US Treasury market. The US Treasury's International Capital Flow Report for March 2025 shows that Japan increased its holdings of US Treasury securities by $4.9 billion in March, with a total holding of $1.1308 trillion, remaining the largest creditor of the US. China reduced its holdings of US Treasury securities by $18.9 billion in March to $765.4 billion, marking the first decrease this year. After the reduction, China's holdings of US Treasury securities fell from second place to third place.