Japanese investors sold more than $20 billion in international bonds, including U.S. Treasuries, in early April as tariffs imposed by President Donald Trump triggered market volatility. This sell-off represents the largest two-week disposal of long-dated foreign bonds by Japanese private financial institutions on record, totaling $20.1 billion in the two weeks ending April 11. Additionally, Japanese investors sold over $3.5 billion in longer-dated foreign bonds during the week of April 5 to April 12. Japan remains the largest foreign holder of U.S. Treasuries, with holdings of approximately $1.1 trillion across public and private sectors. Foreigners collectively hold 33% of all U.S. government bonds. China holds about $760 billion directly and likely another $500 billion via European intermediaries, while the United Kingdom holds $750 billion. Foreign holdings of U.S. Treasury securities have fallen to their lowest levels since the mid-1990s. As of February 2025, foreign countries collectively held $8.8 trillion in U.S. government debt, accounting for about 24% of the total. Recent market volatility has also affected U.S. equities, with overseas investors withdrawing over $7 billion from U.S. stock funds, the second-largest withdrawal in history. Meanwhile, U.S. retail investors increased stock purchases, with $21 billion in inflows between April 3 and April 16, and leveraged long ETFs posting a record $6.6 billion in net inflows. Exchange-traded funds (ETFs) have seen $4.4 billion in net outflows since February 1, with $600 million in outflows occurring in April. Despite concerns about foreign demand, recent auctions of 10-year and 30-year Treasuries post-April 2 saw near-average foreign participation. The recent Japanese bond sales remain modest relative to total foreign holdings and the $1 trillion daily volume in the Treasury market. The Dow Jones Industrial Average dropped 971 points on April 21 amid these developments.