Foreign holdings of US Treasuries jumped by $200 billion in February, reaching a record $9.49 trillion. Over the past 12 months, total holdings have increased by $587 billion, showing strong global demand for US debt.
Out of the total, $7.76 trillion (84%) is invested in long term Treasury securities, while the remaining portion is held in short term Treasury bills.
Japan, the largest foreign holder, increased its holdings by $14 billion to $1.24 trillion, the highest level since February 2022. This marks its 13th purchase in the last 14 months as investors continue to seek higher yields abroad.
The United Kingdom, the second largest holder, added $17 billion to reach $897 billion, one of its highest levels on record. Meanwhile, China, the third largest holder, slightly reduced its holdings by $1 billion to
$693 billion.
Top Foreign Holders (February 2026)
| Country | Holdings (USD Billion) | Monthly Change |
|---|---|---|
| Japan | 1239.3 | +14B |
| United Kingdom | 897.3 | +17B |
| China | 693.3 | -1B |
| Belgium | 454.7 | +3.7B |
| Canada | 446.3 | +50.5B |
| Luxembourg | 445.7 | -0.3B |
| Cayman Islands | 443.0 | +10.2B |
| France | 395.1 | +14.6B |
| Ireland | 350.6 | +8.6B |
| Taiwan | 313.5 | +5.7B |
| Switzerland | 286.7 | -2.5B |
| Singapore | 280.0 | +6.6B |
| Hong Kong | 269.2 | +9.3B |
| Norway | 223.0 | +4.2B |
| India | 190.6 | +0.2B |
| Brazil | 170.6 | +2.6B |
| Saudi Arabia | 160.4 | +25.6B |
| South Korea | 140.9 | -0.4B |
| United Arab Emirates | 119.9 | +7.5B |
| Israel | 110.8 | -3.9B |
Key Insights
- Japan continues aggressive accumulation, driven by yield differentials.
- The UK is rapidly strengthening its position as a major global capital hub.
- China is slowly reducing exposure, signaling diversification.
- India maintains stable exposure with limited incremental buying.
- Oil exporters like Saudi Arabia are increasing allocations.
- Financial hubs in Europe continue to act as key intermediaries.
Conclusion
The continued rise in foreign holdings reflects strong global confidence in US Treasuries, especially during periods of uncertainty and elevated interest rates. Long term securities dominate allocations, indicating that investors are locking in yields while managing global risk exposure.
