Foreign investment in U.S. debt surged by 7 percent in 2024, while domestic demand for Treasury securities has been lackluster over the past year.
According to new Treasury data, total holdings of Treasury securities reached $8.51 trillion last year, up from $7.94 trillion at the end of 2023.
However, foreign investors curtailed their exposure to Treasury bills, bonds, and notes in December, declining by approximately $120 billion.
Japan and China, the world’s largest holders of U.S. debt, reduced their holdings. Tokyo trimmed its exposure by $28 billion to $1.06 trillion, while Beijing cut its holdings by $9 billion to $759 billion. Both nations lowered their exposure to U.S. debt in 2024….