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Who Is Buying US Debt? Japan's Treasury Holdings

Sep 10, 2026 US Treasuries 43:19 video

By a former derivatives trader with 10 years experience at three of the world's largest investment banks.

THE HOUSE Who Buys
US Debt? Japan's $1.12T, shrinking Watch on YouTube, 43:19

The full breakdown runs 43:19. The written version below covers the numbers.

Treasury Secretary Scott Bessent told an audience at Southern Methodist University: "I am the house now. And you can bet against me if you want." The next day the Treasury announced a buyback of up to $6 billion, and the 10-year closed at 4.84%, the highest close since October 2023.

$1.12T
Japan's US Treasury holdings

24
Primary dealers required to bid

3%
Japan's 10-year, first time since 1996

How an auction works

The deficit sets how much the Treasury sells, so price is the only free variable. 24 primary dealers must bid; they don't have to bid well. When demand is thin the auction tails, and the dealer takedown shows how much nobody else wanted.

Who holds the debt

Japan is the largest foreign holder at about $1.12 trillion, down 3.3% in a year, as Japanese 10-year yields reached 3% and money can earn at home.

The warning

The UK's 2022 gilt crisis showed how fast bond vigilantes can force a policy reversal.

Why it reaches you

Mortgage rates follow the 10-year plus a spread, so a weak auction in Washington shows up in a mortgage quote.

What it means for the bond ETF is in TLT ETF Analysis.

Sources: US Treasury auction results and TIC data; Federal Reserve; Bank of England; Freddie Mac PMMS. Nothing here is investment advice.

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