Foreign investors are purchasing U.S. government debt at near-record levels, driving total foreign holdings to a staggering $9.3 trillion in January, even as structural cracks emerge in the broader bond market.
Japan And Allies Drive The Surge
Global demand for U.S. Treasuries saw a sharp uptick at the start of the year, with total foreign holdings swelling by $34.8 billion, according to Macromicro.me data shared by The Kobessi Letter.
Japan solidified its position as the largest foreign creditor, purchasing $39.8 billion to bring its total stockpile to $1.2 trillion—the highest since July 2022.
The United Kingdom closely followed, adding $29.3 billion to reach $895.3 billion, its third-highest level on record. The European Union also increased its holdings by $8 billion.
Collectively, foreign investors now own more U.S. debt than ever before, acting as a crucial pillar for the growing federal deficit.
