Foreign investors increased their holdings of U.S. Treasury securities to a record $8.4 trillion in November 2026, marking a $62 billion rise from the prior month and underscoring continued global demand for U.S. debt despite rising interest rates and geopolitical uncertainty.
- Foreign holdings of U.S. Treasuries rose to $8.4 trillion in November 2026, a record high.
- The monthly increase was $62 billion, following a $48 billion gain in October.
- Japan and China remain the top two foreign holders, collectively owning over 40% of foreign-held Treasuries.
- Domestic investors reduced Treasury holdings by $12 billion in November.
- Foreign ownership now represents 38% of total U.S. Treasury securities outstanding.
- Federal debt exceeds $35.8 trillion, with fiscal deficits exceeding $1.9 trillion in FY2026.
Foreign official institutions and private investors raised their stakes in U.S. government debt to $8.4 trillion in November, the highest level on record. The increase, amounting to $62 billion, followed a $48 billion gain in October, signaling sustained confidence in the safety and liquidity of U.S. Treasury instruments. Japan and China remained the largest foreign holders, collectively accounting for over 40% of total foreign-owned Treasuries, though their individual positions showed slight fluctuations during the month. The surge in foreign demand contrasts with domestic investor behavior, where U.S. mutual funds and pension funds reduced their Treasury holdings by $12 billion in November. This divergence highlights the growing reliance of the U.S. government on international capital to finance its fiscal deficit, which reached $1.9 trillion in the fiscal year ending September 2026. With the federal debt now exceeding $35.8 trillion, foreign ownership has risen to 38% of the total outstanding Treasury securities. The increase in foreign holdings has implications for U.S. monetary policy and currency markets. A higher share of foreign ownership can amplify interest rate sensitivity in Treasury yields, particularly during periods of global risk aversion. Additionally, sustained foreign demand may support the U.S. dollar’s value, though it also raises long-term concerns about external leverage and fiscal sustainability. Market participants are closely monitoring foreign holding trends, as they influence the cost and availability of government borrowing. The Federal Reserve’s ongoing balance sheet normalization and fiscal policy decisions will continue to shape investor sentiment, especially among central banks and sovereign wealth funds that hold significant Treasury portfolios.