Foreign holdings of U.S. government debt reached a record high in November, signaling renewed confidence in American financial markets. Total foreign investments in U.S. Treasuries rose to $9.355 trillion, up from $9.243 trillion in October, according to data from the U.S. Treasury Department. This increase came after two months of declines and followed the end of the longest government shutdown in U.S. history, which lasted 43 days.
The shutdown began on October 1 and concluded on November 12, when the government reopened after a funding bill was signed into law. The resolution of this political impasse helped restore market confidence, encouraging foreign investors to increase their holdings of U.S. Treasuries.
Major Countries Increase Treasury Investments
Japan remained the largest non-U.S. holder of Treasuries, with holdings rising to $1.202 trillion in November. This is Japan’s highest level since July 2022, when its U.S. debt investments reached $1.231 trillion. Japanese Treasury holdings have grown for 11 consecutive months, reflecting consistent demand for safe and stable investments.
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The United Kingdom, the second-largest holder, also increased its holdings to $888.5 billion, up 1.2% from October. The UK serves as a major custody hub, often acting as a channel for hedge funds and institutional investment flows from around the world. Other custody hubs, like the Cayman Islands and the Bahamas, also play similar roles in global Treasury markets.
Canada saw the most notable growth among major holders, boosting its holdings by 13% to a record $472.2 billion in November. This is a significant recovery from April, when Canadian holdings fell nearly 14% due to trade tensions with the U.S. over steel, aluminum, and automobiles.
On a transaction basis, foreigners purchased $85.6 billion in U.S. Treasuries in November, reversing the $60.1 billion in outflows in October. Earlier in the year, May saw the largest inflows since August 2022, with foreign purchases totaling $147.4 billion.
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During the same period, United States 10-year Treasury yields started the month at 4.107% and ended at 4.019%, showing a slight decline as foreign demand increased.
China Reduces Treasury Holdings
While most major holders increased investments, China reduced its U.S. Treasury holdings to $682.6 billion, the lowest level since September 2008, when holdings had fallen to $618.2 billion. China remains the third-largest non-U.S. holder, but its total Treasury investments have declined by more than 10% since the start of 2025.
This reduction is part of a gradual trend, as China adjusts its foreign reserves and manages its exposure to U.S. government debt. Although still a significant holder, China’s pullback contrasts with the steady increases seen from other countries like Japan, the UK, and Canada.
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Foreign Investment Also Targets U.S. Stocks
In addition to Treasuries, foreign investors also bought $92.2 billion in U.S. stocks in November, compared with $60.3 billion in October. This shows that global investors are not only seeking safe government debt but are also investing in U.S. equity markets.
Overall, the United States recorded a net capital inflow of $212 billion in November, reversing the $22.5 billion outflow in October. The data highlights that foreign investment is returning strongly to the U.S., both in government bonds and in stock markets.
Countries like Japan, the UK, and Canada led the surge in Treasury purchases, while China reduced its exposure. The inflows show that U.S. financial markets remain a major destination for global capital, especially in times of political or economic uncertainty.