Foreign Holdings of U.S. Treasuries Reach Record High in November After Government Shutdown

Foreign holdings of U.S. Treasuries reached a record $9.355 trillion in November, rebounding after declines during the 43-day U.S. government shutdown. Japan, the UK, and Canada increased their holdings, with Japan maintaining its position as the largest foreign holder. China, however, reduced its exposure to the lowest level since 2008. The rise in Treasury and equity purchases reflected renewed global investor confidence following the shutdown's resolution, resulting in a net capital inflow of $212 billion in November.