Global money returns to US debt, lifting treasury holdings to all-time peak

Foreign holdings of U.S. Treasuries climbed to a record high in November, rebounding after two consecutive monthly declines as investor confidence improved following the end of the longest federal government shutdown in U.S. history, according to data cited by Reuters. The U.S. government shut down on October 1 and remained closed for a record 43 days before reopening on November 12, after President Donald Trump signed a funding bill into law. The resolution of the shutdown appeared to ease concerns among global investors, supporting renewed demand for U.S. government debt. Holdings of U.S. Treasuries by foreign investors rose to an all-time high of $9.355 trillion in November, up from $9.243 trillion in October, Treasury Department data released on Thursday showed. On a year-on-year basis, foreign-owned Treasuries were up 7.2%, Reuters reported. Japan, the United Kingdom, Belgium and Canada led the increase in holdings. Japan remained the largest non-U.S. holder of Treasuries, with its portfolio rising to $1.202 trillion in November. This marked Japan’s highest level since July 2022 and extended an 11-month streak of increases in its Treasury holdings, according to Reuters. The United Kingdom, the second-largest foreign holder, also increased its exposure, with holdings rising to $888.5 billion, about 1.2% higher than in October. The UK is widely viewed as a key custody hub for global investors and often reflects hedge fund activity, though such funds also route investments through jurisdictions such as the Cayman Islands and the Bahamas, Reuters noted. Live Events Canada posted one of the sharpest monthly increases, boosting its Treasury holdings by 13% to a record $472.2 billion in November. This represented a significant reversal from April, when Canadian holdings fell sharply after the U.S. imposed tariffs on Canadian steel, aluminium and automobiles, according to Reuters. In contrast, China continued to reduce its exposure to U.S. government debt. Its Treasury holdings slipped to $682.6 billion in November, the lowest level since September 2008. While China remains the third-largest foreign holder, its holdings have fallen by more than 10% since the start of 2025, Reuters reported. Market conditions during the month were also supportive of demand for Treasuries. The benchmark 10-year U.S. Treasury yield began November at 4.107% and ended the month nearly nine basis points lower at 4.019%. On a transactional basis, foreign investors were net buyers of Treasuries in November, with inflows of $85.6 billion following outflows of $60.1 billion in October. Earlier in the year, May recorded inflows of $147.4 billion, the largest monthly total since August 2022, according to data cited by Reuters. Foreign appetite extended beyond bonds, with overseas investors purchasing $92.2 billion worth of U.S. equities in November, up from $60.3 billion in October. Overall, the data showed a net capital inflow of $212 billion into the United States during the month, reversing revised outflows of $22.5 billion recorded in October, Reuters reported. (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless For a future, Hindustan Copper is reviving what it junked in past FOMO or geopolitical safety net: What’s fuelling the gold ETF rush? Generous payouts come back to bite IT firms in the era of AI Scott Adams and the weasel-proof wallet Stock Radar: Coal India stock breaks out from Ascending Triangle range to hit fresh 52-week high in January 2026; time to buy? These mid-cap stocks with ‘Strong Buy’ & ‘Buy’ recos can rally over 25%, according to analysts 1 2 3