U.S. Treasury data reveals a growing divide: India, alongside China, Brazil, and Saudi Arabia, is reducing its holdings as part of the BRICS de-dollarization trend, while U.S. allies like Japan, Germany and the U.K. increase purchases to support Washington’s swelling debt.
This new set of numbers on U.S. Treasury holdings looks less like a neutral snapshot and more like a mirror of the current geopolitical divide. On the surface, the global appetite for Treasuries has actually risen: the top-10 foreign holders expanded their positions by more than $800 billion between June 2024 and June 2025. But if you dig into the composition, the picture is far from uniform.
The BRICS members in the top-10 — China, India, Brazil, and Saudi Arabia — have all trimmed their exposure. Taken together, they reduced their holdings by nearly $60 billion. That is not a massive number in the context of trillions, but the signal is clear: they are deliberately diversifying away from U.S. debt. This coincides neatly with the political rhetoric coming from Beijing, Moscow, and increasingly New Delhi, about the need for a “new world order.” In other words, the financial side is starting to line up with the political declarations.
On the opposite side, Washington’s closest allies — Japan, the U.K., Belgium, France, Israel, Germany — all increased their Treasury positions. These are not moves driven by the intrinsic appeal of U.S. debt, which remains structurally vulnerable with ballooning deficits and low yields. Instead, this looks very much like coordinated financial alignment: buying Treasuries as a political act, a way to signal loyalty and stabilize the system the U.S. depends on.
So the divergence is becoming sharper. The U.S. debt market is increasingly sustained by its allies, while rival blocs slowly but persistently reduce their exposure.