(March 19): Overseas holdings of US Treasuries rose in January, a month that saw a spike in concern over European demand for American assets in light of US President Donald Trump’s threats over Greenland.
Total foreign holdings increased by US$34.8 billion, to US$9.31 trillion ($11.94 trillion), Treasury Department data showed on Wednesday. The figure represents both net sales and valuation changes. A Bloomberg index of the US Treasury market showed little change in January after a decline in December.
January’s advance came after an US$88.3 billion decline the month before. The rebound was led by the UK and Japan, with Canada — whose stockpile can be volatile month-to-month — seeing a notable slide.
Japan, the biggest foreign holder of Treasuries, saw its holdings climb by US$39.8 billion, to US$1.23 trillion. The UK, which has the second-largest foreign pool, had a US$29.3 billion gain, to US$895.3 billion.
China’s stockpile of Treasuries, the third largest, rose by US$10.9 billion, to US$694.4 billion. Belgium, whose holdings include Chinese custodial accounts according to market analysts, saw its holdings decline US$26.3 billion, to US$451 billion.
Europe’s holdings
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As a group, European Union holdings saw an US$8 billion advance, to US$2.13 trillion. In January, as Trump pressured Denmark over its island of Greenland, a Danish pension fund in January warned it was planning to exit its Treasuries position.
Treasury Secretary Scott Bessent that same month dismissed speculation about Europe possibly dumping US government securities, calling it a “false narrative”. He also said that “it defies any logic”.
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