Japan is the largest holder of US Treasuries, passing China in February. Japan back on top!

  • Japan's February holdings are down $14.2b m/m to $1.2244tln
  • While China's down -$15.4b m/m to $1.2237tln

According to the U.S. Treasury Department monthly report

Bloomberg reports that Japan last surpassed China in holdings in 2008

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Japanese investors are sending money out of the country in search of yield after BOJ QQE. Meanwhile, China is trying to have the yuan not decline too rapidly. The falling Chinese holdings will add to chatter that there is official support for the yuan, along with reinvestment domestically as opposed to offshore.