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Foreign ownership of US Treasuries climbed to an all-time high in November, rebounding after two months of declines as investor sentiment improved following the end of the US government shutdown.
Data released by the US Treasury Department on Thursday showed that overseas holdings of US government debt rose to $9.355 trillion in November, up from $9.243 trillion in October and 7.2 per cent higher than a year earlier.
The rise came after the federal government ended its record 43-day shutdown on November 12, which had rattled markets in October.
Japan remained the largest foreign holder of US Treasuries, increasing its stockpile to $1.202 trillion—its highest level since July 2022—marking 11 consecutive months of purchases.
The United Kingdom, the second-largest holder, also raised its exposure to $888.5 billion, up 1.2 per cent from October. Analysts note that the UK often acts as a custody hub for hedge funds and institutional investors.
Canada posted the sharpest rebound, lifting its holdings by 13 per cent to a record $472.2 billion, reversing a steep drop earlier in the year after tariff tensions with the Trump administration.
In contrast, China reduced its holdings to $682.6 billion, the lowest level since September 2008, and more than 10 per cent below its position at the start of 2025. China remains the third-largest foreign holder but has steadily cut exposure.
On a transaction basis, foreign investors bought $85.6 billion in Treasuries in November, compared with net sales in October. They also purchased $92.2 billion in US equities, signalling renewed appetite for American assets.
Overall, the United States recorded net capital inflows of $212 billion in November, reversing outflows seen the previous month. Meanwhile, the benchmark 10-year Treasury yield slipped from 4.107 per cent at the start of November to 4.019 per cent by month-end, reflecting stronger bond demand.
Data released by the US Treasury Department on Thursday showed that overseas holdings of US government debt rose to $9.355 trillion in November, up from $9.243 trillion in October and 7.2 per cent higher than a year earlier.
The rise came after the federal government ended its record 43-day shutdown on November 12, which had rattled markets in October.
Japan remained the largest foreign holder of US Treasuries, increasing its stockpile to $1.202 trillion—its highest level since July 2022—marking 11 consecutive months of purchases.
The United Kingdom, the second-largest holder, also raised its exposure to $888.5 billion, up 1.2 per cent from October. Analysts note that the UK often acts as a custody hub for hedge funds and institutional investors.
Canada posted the sharpest rebound, lifting its holdings by 13 per cent to a record $472.2 billion, reversing a steep drop earlier in the year after tariff tensions with the Trump administration.
In contrast, China reduced its holdings to $682.6 billion, the lowest level since September 2008, and more than 10 per cent below its position at the start of 2025. China remains the third-largest foreign holder but has steadily cut exposure.
On a transaction basis, foreign investors bought $85.6 billion in Treasuries in November, compared with net sales in October. They also purchased $92.2 billion in US equities, signalling renewed appetite for American assets.
Overall, the United States recorded net capital inflows of $212 billion in November, reversing outflows seen the previous month. Meanwhile, the benchmark 10-year Treasury yield slipped from 4.107 per cent at the start of November to 4.019 per cent by month-end, reflecting stronger bond demand.
