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Part of situation:
US Treasury bond holdings by foreign allies and partners (2 clusters)
China and Japan reduce U.S. Treasury holdings
China and Japan reduced their holdings of U.S. Treasury debt during August, according to recent Treasury data. China’s holdings fell to $590.7 billion, marking the lowest level since 2008, while Japan’s holdings decreased to approximately $1.07 trillion.
This reduction in foreign demand has contributed to rising Treasury yields. Such shifts in the bond market can influence global interest rates and impact investor risk appetite. The volatility in government debt markets may also affect liquidity and speculative interest within the cryptocurrency market.