Foreign ownership of US Treasuries surged to a new all-time high in March, breaching the $9 trillion mark amid sustained global appetite for American debt securities. According to data released by the US Treasury Department, foreign holdings of US Treasuries rose to $9.05 trillion, up by over $233 billion from February\u2019s $8.81 trillion. This marked the third consecutive monthly increase and represented a nearly 12% jump compared to the same period last year. The record-level accumulation reflects continued confidence in US sovereign debt shortly after President Donald Trump assumed office, although upcoming data may reveal a shift in sentiment following policy developments in early April.<\/p>\n
Highlights:<\/strong><\/p>\n Foreign holdings of US Treasuries hit $9.05 trillion in March, an all-time high.<\/p>\n<\/li>\n Monthly increase of $233 billion and annual rise of nearly 12%.<\/p>\n<\/li>\n March marked the third straight month of increasing foreign demand for Treasuries.<\/p>\n<\/li>\n Strengthened confidence in US government debt in early months of the Trump administration.<\/p>\n<\/li>\n<\/ul>\n Despite March\u2019s record-setting figures, analysts caution that the dynamics may have shifted in April following a significant policy shock on April 2, when the Trump administration implemented steep tariffs, primarily targeting Chinese imports. The move led to a sharp sell-off in US Treasuries, with the yield on the benchmark 10-year note climbing over 70 basis points in just over a week, peaking near 4.6% by April 11. Analysts suggest some of that pressure may have been driven by foreign liquidations, indicating that April’s data could reflect a reversal in demand as geopolitical and trade concerns escalated. While the subsequent 90-day pause on new tariffs has helped stabilize the bond market, foreign investors may continue to approach US assets with caution.<\/p>\n Highlights:<\/strong><\/p>\n April 2 tariff shock triggered a steep rise in 10-year yields, up 70 bps to nearly 4.6%.<\/p>\n<\/li>\n Potential foreign investor sell-off in early April not reflected in March data.<\/p>\n<\/li>\n Treasury market has since stabilized following a 90-day tariff pause.<\/p>\n<\/li>\n Analysts expect a more cautious foreign stance in the months ahead.<\/p>\n<\/li>\n<\/ul>\n Japan retained its status as the largest foreign holder of US Treasury securities, with $1.13 trillion in holdings at the end of March, up modestly from $1.126 trillion in February. Japan\u2019s holdings have now increased for two consecutive months. Meanwhile, the United Kingdom overtook China as the second-largest non-US holder, with $779 billion in Treasuries. However, this figure is widely understood to include custodial accounts, often serving as proxies for hedge funds and other non-transparent institutional investors. Countries such as the Cayman Islands and the Bahamas similarly serve as hubs for hedge fund activity and Treasury custody.<\/p>\n China\u2019s Treasury holdings fell for the second consecutive month to $765.4 billion in March, down from $784.3 billion in February. This marks a continuation of a broader downtrend dating back to 2018. China\u2019s holdings hit a post-financial crisis low of $759 billion in December 2024 \u2014 the lowest since February 2009 \u2014 reflecting Beijing\u2019s reduced appetite for US sovereign exposure amid growing trade tensions and efforts to diversify its reserves.<\/p>\n Highlights:<\/strong><\/p>\n Japan remains top foreign holder with $1.13 trillion in Treasuries.<\/p>\n<\/li>\n UK surpasses China with $779 billion, likely reflecting hedge fund custody accounts.<\/p>\n<\/li>\n China\u2019s holdings fall to $765.4 billion in March, continuing long-term decline.<\/p>\n<\/li>\n China\u2019s Treasury ownership at lowest sustained levels since 2009.<\/p>\n<\/li>\n<\/ul>\n The benchmark 10-year Treasury yield began March at 4.18% and ended the month at 4.425%, reflecting modest upward pressure on yields. Despite this rise, transactional data showed net inflows of $123 billion into Treasury bonds and notes in March, following $106.2 billion of inflows in February. Foreign interest in US corporate bonds also remained strong, with $60.4 billion in inflows, while agency securities recorded outflows of $10.4 billion.<\/p>\n On the equities side, foreign investors added $10.4 billion in US stocks during March, though this was significantly lower than the $24.7 billion in February. Including banking flows, the overall net foreign acquisition of long- and short-term US securities showed a net outflow of $254.3 billion, slightly higher than February\u2019s outflow of $248.9 billion. These figures reflect complex cross-border capital movements, highlighting the resilience of demand for US debt even as broader outflows intensified.<\/p>\n Highlights:<\/strong><\/p>\n Net inflows into US Treasuries totaled $123 billion in March.<\/p>\n<\/li>\n Foreign investment in US corporates reached $60.4 billion.<\/p>\n<\/li>\n Agency securities saw $10.4 billion in net outflows.<\/p>\n<\/li>\n Net foreign acquisitions of long\/short-term securities and banking flows showed $254.3 billion in outflows.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":" Record-Breaking Surge in Foreign Demand for US Treasuries Foreign ownership of US Treasuries surged to a new all-time high in March, breaching the $9 trillion mark amid sustained global appetite for American debt securities. According to data released by the US Treasury Department, foreign holdings of US Treasuries rose to $9.05 trillion, up by over […]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615,1362],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-8898","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news","8":"category-finance-and-economy-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=8898"}],"version-history":[{"count":2,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8898\/revisions"}],"predecessor-version":[{"id":8901,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8898\/revisions\/8901"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/8899"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=8898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=8898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=8898"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=8898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Tariff Shock Raises Questions About April Outlook<\/h2>\n
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Shifting Foreign Holders: UK Surpasses China, Japan Stays on Top<\/h2>\n
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Net Flows and Market Reaction: Strong Demand Despite Volatility<\/h2>\n
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