What are the foreign governments owned by the largest American treasury?

Market for American treasury bonds It plays an important role in how the federal government funds its spending through debt and bears the title of the world’s largest. It also has the most liquid government bond market, although this sector was focusing recently amid market fluctuations due to uncertainty about definitions.

US Treasury bonds are usually seen as a safe haven for investors during the tumultuous times in the economy and financial markets due to their support by the federal government, as it acts as “risk -free” assets with a very low opportunity to fail to pay and use as a standard for securities with other fixed income. Due to the long -term situation of the cabinet as a safe haven, foreign governments have about 24 % of the US government’s debts.

The recent turmoil in the financial markets brought by the president Donald Trump The definitions initially caused investors to flow into treasury bonds and paid revenues for 10 years to less than 4 %, although the sale followed with this with high uncertainty in investor fears and about them to about 4.5 %. The return on the treasury bonds for 10 years between 3.7 % and 4.7 % in 2024.

These recent fluctuations also raised concerns that foreign governments and investors were selling treasury bonds due to concerns about their relative safety amid a constant and increasing federal budget deficit in addition to the uncertainty caused by customs tariffs and commercial policy.

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A recent analysis by Allianz economists noted that, usually, when the treasury returns rise, US dollar It becomes stronger with the exclusion of foreign capital for these higher returns. However, the dollar was weakened when the returns rose, in this case, which “indicates that the holders of the main bonds not only sold the treasury bonds, but also converting the returns into currencies – perhaps allocating European markets.”

Here is what the Ministry of Treasury data showed from the end of February-before the last sale in the Treasury-the largest 10 Foreign Treasury owners from the United States:

• Japan: 1.125 trillion dollars
• China: $ 784 billion
• UK: 750 billion dollars
• Cayman Islands: 418 billion dollars
• Luxembourg: $ 413 Biltion
• Canada: 406 billion dollars
• Belgium 395 billion dollars
• France: 354 billion dollars
• Ireland: $ 339 billion
• Taiwan: 295 billion dollars

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Other countries with large possessions of US Treasury bonds include from the end of February:

• Switzerland: 291 billion dollars
• Hong Kong: $ 274 billion
• Singapore: 260 billion dollars
• India: 228 billion dollars
• Norway: 162 billion dollars
• Saudi Arabia: 126 billion dollars
• South Korea: 125 billion dollars
• United Arab Emirates: 120 billion dollars
• Germany: 104 billion dollars

All other countries carry 1.642 trillion dollars in US Treasury bonds, while the large total, including the main cabinet holders, is $ 8,817 trillion at the end of February, Treasury Ministry I mentioned.

Foreigners who sell US treasury bonds on a large scale can create challenges for the federal government budget as interest rates may rise in response.

This is due to the reverse connection between bond prices and tables: the prices of bonds decrease when the return increases with the increase in investors higher returns on their investments; The prices of bonds have risen with low returns, as investors pay a higher price allowance for what is seen as a relatively safer asset due to low return.

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In the past fiscal year, the federal government spent about $ 881 billion on interest expenses resulting from the need for national debt service, which exceeds $ 36 trillion. It was the first time that federal spending on interest expenses was greater than two main elements on the government professor’s book – the budget of the Ministry of Defense and Medical Welfare – and contributed to more than 1.8 trillion dollars Annual budget deficit.

These are the interest expenses about two and a half times the amount that was spent in 2021 due to a More national debtWhich has grown at a faster pace in the past few years due to the spending on Covid relief measures, as well as high debt interest rates.

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This fiscal year, interest expenses are expected to increase to $ 952 billion, or 3.2 % of GDP (GDP), according to an analysis conducted by the Non -party Congress Budget Office (CBO). This trend is expected to continue, with interest costs reaching an estimated 5.4 % of GDP by 2055; After a decade, CBO offers the average interest rate on the national debt that will exceed the economic growth rate.