By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 15 (Reuters) - Foreign holdings of U.S. Treasuries hit record highs in November, rising after two straight months of declines as market sentiment improved after the U.S. federal government ended the longest-ever shutdown in history.
The U.S. government shuttered on October 1, staying closed for a record 43 days. The shutdown ended on November 12, with President Trump signing a funding bill into law to reopen the government.
Holdings of U.S. Treasuries rose to
an all-time peak of $9.355 trillion in November, up from October's $9.243 trillion, data from the Treasury Department showed on Thursday. Compared with a year earlier, Treasuries owned by foreigners were up 7.2% in November.
The increase in holdings was led by Japan, the United Kingdom, Belgium, and Canada.
Japan remained the biggest non-U.S. holder of Treasuries with $1.202 trillion in November, its biggest holdings since July 2022, when its stash of U.S. government debt hit $1.231 trillion. Japan's Treasuries have increased for 11 straight months.
The UK, the second-largest owner of Treasuries, also raised its holdings by $888.5 billion, up 1.2% from October. The UK is widely seen as a major custody hub, often serving as a proxy for hedge fund investment flows. Hedge funds also use other custody jurisdictions, including the Cayman Islands and the Bahamas.
Canada also boosted its holdings by 13% to a record $472.2 billion in November. That was a big turnaround from a nearly 14% drop in April with Treasury holdings of $368.4 billion as Trump hit Canada with tariffs on steel, aluminum and automobiles.
In contrast, China's stash of U.S. government debt fell to $682.6 billion in November, the lowest since September 2008, when holdings tumbled to $618.2 billion. China is the third-largest non-U.S. owner of Treasuries, but its holdings have declined by more than 10% since the beginning of 2025.
U.S. benchmark 10-year Treasury yields started November with a yield of 4.107%, ending nearly nine basis points lower to 4.019% by the end of that month.
On a transaction basis, foreigners bought Treasuries in November, with inflows into the sector of $85.6 billion, from outflows of $60.1 billion in the previous month. In May, there were foreign inflows of $147.4 billion in Treasuries, the largest since August 2022.
Foreign investors also bought $92.2 billion in U.S. stocks, compared with purchases of $60.3 billion in October.
Data also showed net overall capital inflow of $212 billion into the United States in November, after posting outflows of a revised $22.5 billion in October.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Chris Reese and Diane Craft)
