The chart uses January 2019 as the base period: UK nominal holdings increased by approximately $658 billion, offsetting China's reduction of approximately $467 billion; 25 major US banks increased their holdings by approximately $1.16 trillion, and stablecoin issuers' holdings of short-term US Treasury bonds and repurchase agreements are estimated at approximately $251 billion.
The latest June data from the US Treasury shows that Japan, China, and the UK reduced their holdings by $26.4 billion, $25.9 billion, and $8.7 billion respectively that month, but they remain the top three foreign holders.
(The large banks in the chart refer to the Federal Reserve's H.8 "Treasury and Agency Securities" data, which includes agency MBS and cannot be entirely considered as demand for US Treasury bonds.)
This data indicates that US Treasury bond buyers are diversifying, but the new force is mainly concentrated in the short end. Stablecoin reserves are biased towards Treasury bills and repurchase agreements, and large banks' purchases are also constrained by their balance sheets, making it difficult to directly replace long-term debt demand.
