During the third quarter of the year, Japan and China reduced their holdings of US Treasuries, just before the presidential election.

According to data from the US Department of the Treasury, Japanese investors sold a record $61.9 billion in Treasuries between July and September.

At the same time, Chinese funds divested $51.3 billion in US government debt, which is the second-largest divestment on record. This change in investment strategy by two of the largest foreign holders of US debt reflects their response to evolving market conditions leading up to the election.