Net purchases of U.S. Treasuries plummet by more than 60%, with significant reductions from Asian countries

According to data from the U.S. Treasury Department and the State Department, in the first eight months of 2026, countries and regions closely related to the United States net purchased $174.3 billion in U.S. Treasury bonds, a decline of over 60% year-on-year. Japan's net purchase was only $389 million, while South Korea net sold $23.8 billion. Multiple factors contributed to this change, including the weakening of local currencies, rising domestic yields, and uncertainty in U.S. policy.