Current treasury issuance exceeded the level seen only during the deepest Covid lockdown.
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Japanese investors sold $61.9 billion of Treasuries in Q3 2024, the most on RECORD. Chinese funds dumped $51.3 billion, the second largest on record. Japan and China are two world's biggest foreign holders of US government debt. Source: Global Markets Investor
$TLT $AGG Source: Mike Zaccardi, CFA, CMT, MBA
Europe’s Treasury holdings have risen by $1.5 trillion with the rest of the world acquiring $1.7 trillion of bonds. On the other hand, China and Japan's holdings have shrunk by ~$500 and ~$100 billion, respectively. Overall, total foreign holdings as a share of outstanding federal debt have dropped from 35% to 24%, near the lowest level in 18 years. This is the consequence of rapidly rising public debt with the supply of Treasuries rising ~$15 trillion over the last decade. Foreign demand for Treasuries cannot keep up with skyrocketing US debt. Source: The Kobeissi Letter