I do not understand macro-economics well enough to comment on this question, but my understanding is that the global economics system rests on the value of the US dollar. And that value rests on the stability and predictability of US bonds, which are essentially borrowed money which at some time in the future can be liquidated, much like a mortgage or an auto loan, both of which vanish when those arrangements are paid off.
--> It seems "domestic holdings have grown faster" than foreign "holdings" which indicates we are borrowing more from ourselves.
As of early 2026, foreign holdings of U.S. Treasury securities have reached an all-time high of approximately $9.4 trillion. This represents roughly 24% to 32% of the total outstanding U.S. federal debt. While the nominal amount of debt held by other countries has increased, the percentage of the total U.S. debt held by foreign entities has generally declined from a peak of nearly 50% in the early 2010s as domestic holdings have grown faster.
Major Foreign Holders of U.S. Treasury Securities (Nov 2025)
Key Insights
- Leading Holders: Japanremains the largest single foreign holder of U.S. debt, with $1.202 trillion as of November 2025. TheUnited Kingdomfollows as the second-largest holder at $888.5 billion.
- Chinese Divestment: Chinahas continued to reduce its holdings, which fell to $682.6 billion in late 2025, the lowest level for the country since 2008.
- European Influence: Collectively, European countries hold approximately $3.6 trillion, accounting for nearly 40% of all foreign-owned U.S. debt.
- Private vs. Official: Foreign holdings are split between official government/central bank accounts (44.2%) and private investors such as corporations and individuals (55.8%).
- Custodial Hubs: Countries like the United Kingdom,Belgium, and theCayman Islandsoften show high holdings because they act as major international banking and custody hubs for investors based in other nations.
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