In January, holdings of U.S. Treasuries by investors outside the United States increased, with Japan leading the way; Greenland's threats have not yet affected European holdings.

In January, holdings of U.S. Treasuries by investors outside the United States increased, with Japan leading the way; Greenland's threats have not yet affected European holdings.

```

Data released by the US Treasury on Wednesday shows that foreign holdings of US Treasury bonds increased by $34.8 billion, reaching $9.31 trillion. In January, overseas holdings of US Treasuries rose after having decreased by $88.3 billion in the previous month. The data also reflects net buying and selling as well as changes in valuation. The US Treasury bond index was basically flat in January following a decline in December.

During January, market concerns over European demand for US assets intensified due to threats by US President Trump regarding Greenland:

Trump's repeated threats to sharply increase tariffs sparked market concerns that overseas investors might sell US assets and the dollar.

As Trump pressured Denmark over the Greenland issue, a Danish pension fund warned in January that it planned to exit its holdings in US Treasuries. The largest European pension fund—the Dutch Stichting Pensioenfonds ABP—also significantly reduced its exposure to US assets last year.

US Treasury Holdings by Major Countries and Regions

The rebound was mainly driven by the UK and Japan, while Canada saw a significant decline; Canada's holdings usually fluctuate greatly month-to-month.

As the largest foreign holder of US Treasuries, Japan's holdings increased by $39.8 billion in January, reaching $1.23 trillion.

The UK, ranked second, increased its holdings by $29.3 billion to $895.3 billion in January.

In January, Mainland China's holdings increased by $10.9 billion to $694.4 billion.

Overall, EU countries’ holdings increased by $8 billion to $2.13 trillion. In January, US Treasury Secretary Bessent refuted speculation that Europe might sell US Treasuries, calling it “a mistaken notion” and saying it was “completely illogical.” Bessent repeatedly dismissed talk of “selling out of America,” believing that US government economic policies have strengthened the US’s standing as the world's preferred destination for capital.

 

 

Risk DisclaimerThe market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account individual users’ specific investment goals, financial circumstances, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular situations. Investing accordingly is at your own risk. ```