Foreign Official Holdings of US Treasuries Hit Century Low as Debt Surges
Foreign official holdings of US Treasuries have fallen to 12.5% of total outstanding, the lowest level this century, while total marketable Treasury debt has surged to $29.1 trillion. China's holdings have more than halved to $651.1 billion, the lowest since September 2008.
Foreign official holdings of US Treasuries have dropped to 12.5% of total outstanding debt, the lowest share this century, according to data cited by The Kobeissi Letter. The percentage has fallen by 24 percentage points since its 2009 peak.
Over the same period, total marketable US Treasury debt has surged by $23 trillion (+379%) to $29.1 trillion, near an all-time high. Meanwhile, foreign government entities' holdings increased by only $1.5 trillion (+63%) to roughly $3.9 trillion — a pace far below the growth of overall issuance.
China, once a top holder, has cut its Treasury holdings by more than half to $651.1 billion, the lowest level since September 2008. The gap between rising US debt supply and stagnating foreign demand highlights a structural shift in the Treasury market.
Source: The Kobeissi Letter