China and Japan still own the majority of US government debt. The only important observation is that they have not added to their US holding over the past year even though the US government is ramping up borrowing. US companies and investors have been making up the difference and added $1.5 trillion to their holdings from a year ago. As yields rise, investors and companies will be more willing to own US government debt. The 3 month is yielding about 2%, which is attractive in my opinion. I don’t think the US government is going to go bust in the next three months.
The real problem is that government borrowing is crowding out the private sector. Governments can not allocate resources effectively. They are driven by politics, not profit and loss.