China has changed from the second largest creditor of the United States to the third largest creditor, and the United Kingdom has become the second largest creditor.
On May 16 local time, the data released by the US Treasury Department showed that in March 2025, Japan and the UK increased their holdings of US treasury bond bonds and China reduced their holdings among the top three major foreign debt holders of US debt.
China has changed from the second largest creditor of the United States to the third largest creditor, and the United Kingdom has become the second largest creditor.
With President Trump's introduction of the world's highest taxes in a century, the US bond market has been in turmoil.
In April, US Treasury bonds plummeted for several consecutive days. On April 9th, the yield of 10-year US Treasury bonds broke through the 4.5% mark, and ultimately the decline was stopped by the adjustment of US tariff policies.
On May 14th, just one month later, US Treasury bonds plummeted again, with the 10-year yield hitting a six week high and breaking through the key support level of 4.5%.
But a bigger problem may be that a comprehensive budget bill in the United States recently has made the market tremble again, and may bring a $3.7 trillion fiscal deficit to the United States in the next decade.
This may exacerbate overseas investors' concerns about the sustainability of US debt and further push up the risk premium of long-term US treasury bond bonds.
On March 10, UN Secretary-General's spokesperson Dujarric pointed out that if the Strait of Hormuz were closed, global energy and food markets would be impacted.
Latest data released by China's General Administration of Customs on November 7 showed that in the first 10 months of this year, China's goods trade maintained a steady growth trend, with total import and export values increasing by 3.6% year-on-year.
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