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.
