Japanese and Chinese investors sold significant amounts of U.S. Treasuries in the third quarter as concerns over U.S. elections and inflation risk mounted. Japan sold a record $60 billion, while Chinese funds sold $50 billion, the second-largest quarterly sales. The Treasury yield peaked in mid-September before dropping nearly 4%, fueled by concerns over President-elect Donald Trump’s policies. Japan and China remain major U.S. debt holders. Analysts expect more Treasury sales as markets adjust to anticipated inflationary policies and geopolitical tensions.
