Latest news with #USdebt
Yahoo
4 days ago
- Business
- Yahoo
Foreign holdings of US Treasuries climb to record $9.13 trillion in June
By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) -Foreign holdings of U.S. Treasuries rose to record levels in June, topping $9 trillion for a fourth straight month, data from the Treasury Department showed on Friday. Holdings of U.S. Treasuries climbed to $9.13 trillion in June, up from $9.05 trillion in May. Compared with a year earlier, Treasuries owned by foreigners were up nearly $1 trillion, or 10% higher. However, on a transaction basis, the U.S. experienced outflows of $5 billion after buying roughly $147 billion in Treasuries in May, the largest since August 2022. In April, there was an outflow of $40.8 billion as President Donald Trump's back-and-forth tariff policies roiled markets. Japan remained the largest non-U.S. holder of Treasuries, with a record $1.147 trillion in June, up $12.6 billion from the previous month's $1.134 trillion. UK investors, the second-largest owner of U.S. government debt, raised their pool of Treasuries to another record of$858.1 billion, up 0.6% from $809.4 billion in May. The UK overtook China as the second-largest non-U.S. holder of Treasuries in March. The UK is widely viewed as a custody country, generally a proxy for hedge fund investments. Other countries used by hedge funds for custody services include the Cayman Islands and the Bahamas. Treasury holdings of China, the third-largest owner of U.S. government debt, were little changed at$756.4 billion, compared with $756.3 billion in May, which was the lowest since February 2009 when the country's stock of Treasuries dropped to$744.2 billion. China's holdings were way below their largest level of more than $1.3 trillion held between 2012 and 2016. China, the world's second-largest economy, has been gradually dumping Treasuries to bolster its currency, the yuan. Analysts said a slowing Chinese economy, post-COVID challenges, and trade barriers have diminished China's inflows from exports. Data also showed that other foreign investors in Asia like Hong Kong and India reduced their cache of Treasuries to $242.6 billion and $227.4 billion, respectively. Foreign investors, meanwhile, also poured back into U.S. equities, injecting inflows of $163.1 billion in June that followed $115.8 billion in purchases in May. Data also showed that the net capital inflow into the United States totaled just $77.8 billion, down 75% from the revised$318.1 billion in May, which was the largest since September 2024. Sign in to access your portfolio
Bloomberg
4 days ago
- Business
- Bloomberg
Foreign Holdings of Treasuries Climbed to a Record High in June
Foreign investor holdings of Treasuries climbed to a record high in June, showcasing sustained overseas demand for US government debt even as a slump in the dollar stoked concerns about sentiment toward American assets. Foreign holdings totaled $9.13 trillion for June, up $80.2 billion from May, Treasury Department figures showed Friday. For the first half of the year, foreign holdings went up by $508.1 billion. That was during a period in which one benchmark gauge of the dollar tumbled by almost 11%, the most since 1973.
Bloomberg
18-07-2025
- Business
- Bloomberg
Trump's Fed Threat Risks Price Stability, Incoming ECB Rate Setter Says
Incoming Austrian central bank Governor Martin Kocher said Donald Trump's attack on the Federal Reserve's independence puts price stability at risk. The former economy minister — who's set to replace Robert Holzmann on the European Central Bank's Governing Council in September — said Trump's administration is disregarding Fed independence based on dubious legal reasoning and with the clearly stated desire to reduce US debt costs.
Yahoo
11-07-2025
- Business
- Yahoo
'Big Short' investor Steve Eisman is begging people to stop worrying about the US debt
"Big Short" investor Steve Eisman wants people to stop fretting over the US debt. The 10-year US Treasury yield tells markets the situation is fine, he said. The famed investor said too many people were trying to look for the next "Big Short." Steve Eisman wants people to please stop talking about the US debt. "The Big Short" investor said he was tired of being asked about his outlook for the US debt, and that the budget deficit is probably fine . He said the noise now is probably from people who are trying to replicate the success of investors, including himself, who successfully bet against the housing market in 2008. "You know what I have to say about all this? Just stop. God's sake," Eisman said when asked about the US debt on CNBC this week. "I'm going to say this. Maybe it's a little too obnoxious, but I can't help myself. It's just so — how many times do I get this question? People want to be me. They want to predict the end of the world. And I have news for all of them. The position of Steve Eisman is taken." Eisman, who is best-known for betting against the housing market during the 2008 subprime mortgage crisis, described himself as an optimist. Speaking on the budget deficit, he pointed to the 10-year US Treasury yield, which is the benchmark government bond. This embedded content is not available in your region. The 10-year yield has whipsawed this year amid concerns about President Donald Trump's tariffs and the GOP tax and spending bill, which is expected to add nearly $3 trillion to the deficit over the next decade, according to the Congressional Budget Office. But the yield has been mostly "directionless" when viewed since 2022, Eisman said. That's a sign that the market isn't seriously losing faith in the US fiscal position. "Again, I think the reason is there's no alternative to Treasurys. If there was a real alternative to Treasurys, then all this stuff about the deficit is something I would pay attention to. But because there's no alternative, there's nothing to talk about," Eisman added. Markets have paid close attention to the demand for US Treasurys, as weak demand could signal investors no longer view the bonds as safe-haven assets. But demand at recent Treasury auctions has mostly been strong, including for the latest 10-year Treasury auction on Wednesday. While he's most famous for his bearish call on the housing market leading up to 2008, Eisman has been more upbeat lately. In a previous interview, Eisman said he had de-risked some of his portfolio but remained bullish on markets over the long term, given tailwinds like AI. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
04-07-2025
- Business
- South China Morning Post
Did Trump get his ‘Big Beautiful Bill' at the US dollar's expense?
The passage of a sprawling budget bill has raised concerns over the long-term debt of the United States, which analysts said could compound already heightened worries over the reliability of the country's currency as a safe-haven asset. Advertisement Winning a narrow 218-214 vote in the House of Representatives on Thursday, the 'One Big Beautiful Bill Act' – which raises spending on border security and defence while making the record tax cuts enacted in 2017 permanent – now heads to US President Donald Trump for his signature, which he is expected to give on Friday. It is also set to raise the federal government's debt ceiling by US$5 trillion, surpassing the US$4 trillion allocated by an earlier version of the bill. This creates more room for the Treasury Department to borrow to repay future obligations, but allows for greater debt accrual in the future. Raymond Yeung, chief Greater China economist at ANZ, said while the bill may lower the immediate risk of a government default, it also deepens worries over US debt sustainability and the interest rate structure. 'In the months leading up to the bill's passage, investors had already been discussing how to diversify risk and reduce their exposure to US dollar assets,' he said. Advertisement Even without the bill, Yeung noted, momentum for diversification has been building in a number of countries.
