After a 43‑day federal shutdown, foreign investors rushed back into US government bonds, pushing total foreign holdings to a new high.
Record‑setting foreign holdings
In November, foreign owners of US Treasury securities reached $9.355 trillion, up from $9.243 trillion in October. That’s a 7.2% increase compared with the same month last year.
Top countries adding to their stash
- Japan stayed the largest non‑US holder, with holdings climbing to $1.202 trillion, the highest level since July 2022.
- United Kingdom moved up to $888.5 billion, about 1.2% more than in October.
- Canada posted a sharp rise, adding 13% to reach a record $472.2 billion.
China continues to pull back
China’s Treasury holdings fell to $682.6 billion, the lowest amount since September 2008. Even though it remains the third‑largest foreign holder, its total has dropped more than 10% since the start of 2025.
Why yields helped
The benchmark 10‑year Treasury yield slipped from 4.107% at the start of November to 4.019% by month‑end, making the bonds a bit more attractive to buyers.
Broader capital flows
Foreign investors were net buyers of Treasuries in November, bringing in $85.6 billion after a net outflow of $60.1 billion in October. They also bought $92.2 billion of US stocks, up from $60.3 billion the month before. Overall, the United States saw a net capital inflow of $212 billion in November.
What this means for investors
Higher foreign demand can support Treasury prices and keep yields lower, which may be good news for investors holding bond funds. At the same time, the increased equity purchases suggest confidence in the US stock market.
Remember, this is perspective, not a prediction. Do your own research and consider your personal financial situation before making any investment decisions.