Verified Analysis: Japan's Reduction in U.S. Treasury Holdings

1. Official Treasury Data

Source: U.S. Department of the Treasury, TIC System (March 2025)

Summary: Japan reduced Treasury holdings by $61.9 billion in Q1 2025, confirmed by Treasury International Capital (TIC) reports. This represents the largest quarterly reduction since records began in 1978.

Quarter	Reduction (USD billions)	Remaining Holdings
Q1 2025	-61.9	1,042.3
Q4 2024	-12.4	1,104.2

2. Bank of Japan Statements

Source: Bank of Japan Monetary Policy Meeting Minutes (April 2025)

Key Excerpt: "The adjustment in foreign reserve composition reflects ongoing portfolio rebalancing to optimize risk-adjusted returns under current market conditions."

No mention of political motivations or retaliatory actions in official communications.

3. Federal Reserve Response

Source: Federal Reserve FOMC Meeting Minutes (May 2025)

Confirmed Actions:

• Increased reverse repo operations by $20 billion/week
• Adjusted SOMA portfolio duration
• No emergency interventions announced

4. Market Impact Data

Source: Bloomberg Terminal, Fed Economic Data (FRED)

Metric	Pre-Selloff (Dec 2024)	Post-Selloff (Mar 2025)	Change
10-Year Yield	4.32%	4.91%	+59bps
Dollar Index	103.42	101.87	-1.5%

5. Global Context

Source: IMF Global Financial Stability Report (April 2025)

Key Findings:

• Global central bank gold reserves increased by 1,037 tons in 2024
• Dollar share of global reserves at 58% (down from 61% in 2020)
• No evidence of coordinated anti-dollar movement