Holdings of US Treasuries surged to US$9.05 trillion in March, an all-time peak and up more than US$233 billion from US$8.81 trillion in February. Compared with a year earlier, Treasuries owned by foreigners rose nearly 12 per cent.
Some analysts said that trend could change in April as the Trump administration introduced a massive trade shock on Apr 2 that saw effective tariff rates surge, particularly on Chinese goods.
Foreign holdings of US Treasuries top US$9 trillion in March, data shows
That fuelled a US Treasuries sell-off that, at one point, pushed benchmark 10-year yields more than 70 basis points (bps) higher to nearly 4.6 per cent over the Apr 3 to 11 period. The sell-off may have included selling from foreign investors, analysts said.
Trump has since paused the imposition of tariffs for 90 days, and the Treasuries market has stabilised somewhat, although foreign investors are likely to have remained leery of US assets.
Data also showed that UK investors have overtaken China as the second largest non-US holder of Treasuries, with holdings of US$779 billion.
UK is typically considered a custodial account, which is generally a proxy for hedge funds. Other countries used by hedge funds for custody services include Cayman Islands and the Bahamas.
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