UK Surpasses China as Second-Largest Holder of US Treasurys

May 17, 2025

What to Know:

UK surpasses China in US Treasury holdings, marking a financial shift.
UK holdings now at $780 billion.
Global investment dynamics are significantly impacted.

uk-surpasses-china-as-second-largest-holder-of-us-treasurys — UK Surpasses China as Second-Largest Holder of US Treasurys

The United Kingdom has overtaken China as the second-largest holder of US Treasurys, with $780 billion as of May 2025, according to the US Treasury Department.

This shift underscores the evolving role of the UK in global finance and the fluctuating dynamics of international treasury holdings.

UK Holds $780 Billion, Outpacing China

The UK surpassed China by accumulating $780 billion in US Treasurys. This change emphasizes the UK’s increasing importance as a financial intermediary.

The recent data shows the UK now holds more Treasurys than China. China’s reduced holdings reflect a significant alteration in global financial positions.

Market Confidence Unshaken by UK’s Treasury Surge

Markets responded to the UK’s increased holdings without major disruption, highlighting confidence in US debt. Some specialists note the strategic positioning of London firms.

Financial analysts point out that China’s reduced direct investment could affect geopolitical strategies, while the City of London’s role as a global financial hub expands.

UK’s Rise Reflects Broader Diversification Trend

Historically, China and Japan collectively dominated treasury holdings post-2008. The UK’s rise reflects a broader trend of diversification. Past patterns reveal shifts in response to economic pressures.

Experts predict ongoing evolution in treasury holdings as countries adjust reserve strategies based on shifting global dynamics. Potential challenges include geopolitical adjustments and economic policy changes.

“Despite a decline in China’s direct Treasury holdings, additional exposure through custodial accounts suggests that China’s influence in US debt markets remains significant.”

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.

Thane Morrison

Thane Morrison is a diligent crypto news author and keen blockchain and digital finance enthusiast. He writes insightfully correct engaging content on Bitcoin, altcoins, DeFi, and NFTs to help readers understand how this relentless, changing world works. Simplification and empowerment are what he really stands for and enables readers to keep their heads in the game when making vital decisions in such a demanding space.