Are Foreign Governments Losing Their Appetite For U.S. Treasuries?

This graph tracks foreign government holdings of U.S. long term and short term treasuries, including those held by central banks, finance ministries, and sovereign funds. It excludes private foreign investors, such as banks and pension funds. Foreign government holdings have largely stagnated since 2013, peaked around 2020, and now stand at approximately $3.8 trillion. This trend may signal a gradual shift toward diversifying reserves away from U.S. Treasuries and reducing reliance on U.S. financial markets, although it does not necessarily indicate a loss of confidence in the investment itself. 

Source: Board of Governors of the Federal Reserve System (US); Federal Reserve Bank of New York; U.S. Department of the Treasury. Treasury International Capital via FRED 

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.