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Foreign Investors Piled Into U.S. Assets in 2025 as Treasury Holdings Dipped in December

Private investors, rather than central banks, drove the year's inflows, underscoring a shift toward market-based financing.

Overview

  • Treasury TIC data show overseas buyers added a net US$1.55 trillion to long-term U.S. assets in 2025, including US$658.5 billion to equities and US$442.7 billion to Treasuries.
  • Foreign Treasury holdings hit a record US$9.36 trillion in November before falling US$88.4 billion to US$9.27 trillion in December, the largest monthly drop since late 2022, yet they rose about US$770 billion over the year.
  • China was a notable net seller, offloading US$208.6 billion of long-term assets and cutting its Treasuries to US$683.5 billion, the lowest since 2008, following regulatory guidance reported earlier this month to curb exposure.
  • Recent reports highlight private investors as the dominant Treasury buyers, with November's private purchases (~US$158 billion) outpacing official institutions (~US$64 billion), increasing sensitivity to yield moves.
  • Attribution remains blurred by custodial hubs, with Europe accounting for US$872.8 billion of net inflows in 2025 and notable figures from the Cayman Islands (US$277.2 billion), Japan (US$56 billion), and Canada (US$84.4 billion), while December saw declines in Japan and UK holdings.