Foreign holdings of US Treasuries top $9 trillion in March, data shows

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - Foreign holdings of U.S. Treasuries soared to a grounds precocious successful March, information from the Treasury Department showed connected Friday, rising for a 3rd consecutive month, arsenic request for U.S. authorities indebtedness remained robust a fewer months aft President Donald Trump took office.

Holdings of U.S. Treasuries surged to $9.05 trillion successful March, an all-time highest and up much than $233 cardinal from $8.81 trillion successful February. Compared with a twelvemonth earlier, Treasuries owned by foreigners roseate astir 12%.

Some analysts said that inclination could alteration successful April arsenic the Trump medication introduced a monolithic commercialized daze connected April 2nd that saw effectual tariff rates surge, peculiarly connected Chinese goods.

That fueled a U.S. Treasuries sell-off that, astatine 1 point, pushed benchmark 10-year yields much than 70 ground points (bps) higher to astir 4.6% implicit the April 3-11 period. The selloff whitethorn person included selling from overseas investors, analysts said.

Trump has since paused the imposition of tariffs for 90 days, and the Treasuries marketplace has stabilized somewhat, though overseas investors are apt to person remained leery of U.S. assets.

Data besides showed that UK investors person overtaken China arsenic the 2nd largest non-U.S. holder of Treasuries, with holdings of $779 billion. UK is typically considered a custodial account, which is mostly a proxy for hedge funds. Other countries utilized by hedge funds for custody services see Cayman Islands and the Bahamas.

Japan remains the biggest Treasury indebtedness holder, with a stash of $1.13 trillion successful March, up astir 0.4% from the $1.126 trillion held successful February. Japan's load of Treasuries roseate for a 2nd consecutive month.

China, connected the different hand, reduced its stash of Treasuries to $765.4 cardinal successful March, down from $784.3 cardinal the erstwhile month. In December past year, China's holdings were $759 billion, the lowest since February 2009 erstwhile the country's banal of Treasuries dropped to $744.2 billion.

Treasury holdings by Chinese investors person been connected a downward trajectory since 2018, analysts said.

The benchmark 10-year Treasury output started the period of March astatine 4.18% and ended it somewhat higher astatine 4.425%.

Major U.S. plus classes besides showed a premix of inflows and outflows during the month, the information showed.

On a transactional basis, holdings of Treasury bonds and notes showed a nett inflow of $123 cardinal successful March, pursuing inflows of $106.2 cardinal successful February.

Foreign investors continued to bargain U.S. corporates, with $60.4 cardinal successful inflows, with agencies showing outflows of $10.4 billion, information showed.