The U.S. Treasury Department announced on Wednesday that Japan has officially overtaken China as the top holder of U.S. debt. China's holdings, reports ABC News, fell 1.2 percent to $1.22 trillion. Japan -- the largest holder of U.S. debt before the financial crisis — again holds the most U.S. Treasury bonds, although by only $700 million more than what China does. This is likely because China's economy has been slowing down as of late, leaving them less money to invest abroad, while Japanese investors have been putting their money into dollar holdings due to the higher rate of return.
