Foreign holdings of U.S. Treasury securities reached a record $9.3 trillion in January, data shows. Major buyers included Japan, which increased its stake to $1.2 trillion, the United Kingdom, and China, reflecting robust global demand for American debt as a safe-haven asset amid economic uncertainty.
Foreign investors increased their holdings of United States Treasuries by $34.8 billion in January, pushing the total to a record $9.3 trillion. This marks the second-highest level in history, fueled by strong appetite from major global holders.
Japan, the largest foreign holder, boosted its stake by $39.8 billion to $1.2 trillion, its highest level since July 2022. This represents the twelfth consecutive monthly increase, attributed to domestic investors chasing higher yields abroad.
The United Kingdom, now the second-largest holder, increased its holdings by $29.3 billion to $895.3 billion. China, the third largest holder, added $10.9 billion to its reserves, bringing its total to $694.4 billion, the highest since September.
The European Union also increased its holdings by $8 billion to $2.1 trillion. This rise signals growing European investor interest in U.S. Treasuries, likely driven by attractive yields and a desire for portfolio diversification.
Foreign holdings of US Treasuries surged +$34.8 billion in January, to $9.3 trillion, the 2nd-highest on record. as stated in a market commentary. The trend underscores the sustained global demand for U.S. government debt as a perceived safe asset.
Analysts note the Bank of Japan’s gradual policy easing has facilitated the outflow into foreign bonds. The overarching trend reflects ongoing global economic uncertainty and a strong, persistent demand for United States Treasuries from international investors.
