Daily Spotlight: Global Demand for U.S. Debt

Summary

For years, demand from all corners of the globe for the safety and security of U.S. Treasury debt has helped keep a cap on long-term interest rates, even when inflation was stubbornly high. Total public debt owed by the U.S. federal government was $38.5 trillion at the end of 4Q25, according to the Department of the Treasury (DOT). Outside of U.S. investors, the two largest holders of U.S. public debt were Japan, which owns 3.2% of the debt, and the UK, which owns 2.3%. The other nations among the top 10 holders have 9% of the debt, so the top 10 holders collectively own about 15%. The grand total of U.S. debt owned by foreign holders is $9.3 trillion, or about 24% of the total. Over the past year, this sum has ranged from $8.9 trillion to $9.5 trillion, and is currently above the midpoint of the range. That’s due, in part, to the global “flight to quality” move into US Treasuries after the onset of the war in I