On mid to June this year, the holding amount in the US bond market was 2 trillion yuan, with a total share of only 7.8%, less than one-third of the 2007 high of 25.4%. In contrast, the Federal Reserve holds $5 trillion, accounting for 20% of the entire market.

The top two global holders of US Treasuries, China and Japan, have lost their market share in the US bond market, which was unimaginable 10 years ago.

According to data previously released by the US Treasury Department, the total share of US Treasury bonds held by the two major creditors in China and Japan has dropped to the lowest level on record. This trend is in line with the continued reduction of holdings by the Federal Reserve and in stark contrast to the explosive growth in US bond issuance.

In recent years, the decline in the share of Chinese, Japanese, and US bonds has been particularly significant. In June, the total share of China and Japan in the US bond market was only 7.8%, compared to 25.4% in June 2007.

Among them, Japan's official holdings are 1.11 trillion US dollars, accounting for 4.4% of the entire market, setting a historic low; And China's holdings are $835 billion, accounting for approximately 3.4% of the entire market, which is the lowest in 20 years.

In contrast, the Federal Reserve holds $5 trillion, accounting for 20% of the entire market. With the Federal Reserve shrinking its balance sheet, its holdings are decreasing at a rate of $60 billion per month.

Currently, as the two countries with the largest holdings of US bonds, China and Japan remain significant forces in the US bond market that cannot be ignored. In the past few years, before the global financial crisis, Japan, oil exporting countries and emerging countries turned huge trade surpluses into US treasury bond and established strong foreign exchange reserves. However, in the past few years, their market share has significantly decreased.

In addition, the US bond market also faces another major challenge, with explosive growth in issuance, and the issuance of US bonds in the third quarter is expected to reach a new historical high for the same period.

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