Board of Governors of the Federal Reserve System

Figure 1. Foreign Holdings of U.S. Treasuries

This is a combination chart showing annual data from 1985 to 2025, with two variables plotted using different scales. The left y-axis measures "Foreign share percent" (represented by a dark red line) ranging from 0 to 60 percent. The right y-axis shows "Foreign holdings" in trillions of dollars (represented by a light blue shaded area) ranging from 0 to 30 trillion dollars.

The foreign share percentage started around 15 percent in 1985, gradually rising to about 20 percent by 1995, then climbing more steeply to approximately 35 percent by 2000. It continued rising to peak at nearly 60 percent around 2008-2010, before declining to about 50 percent by 2015, and then falling more sharply to approximately 35-40 percent by 2025. Meanwhile, the foreign holdings in trillions of dollars shows a steady increase from near zero in 1985 to about 7 trillion by 2010, then accelerating to around 15 trillion by 2015, and continuing upward to approximately 20 trillion dollars by 2025.

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Figure 2. Decomposition of 12-month change in Foreign Holdings of U.S. Treasuries

This is an area and line chart showing annual data from 1985 to 2025. The y-axis measures percent, ranging from -25 to 45 percent. The chart displays four variables: "12 month holding change" (black line), "Net transactions" (beige area), "Valuation changes" (green area), and "Other changes" (diagonal striped area).

The 12-month holding change line fluctuates significantly throughout the period, with several major peaks exceeding 25 percent in the late 1980s, mid-1990s, early 2000s, and 2008-2010. There are also periods where the line dips into negative territory, notably around 2000 and briefly during 2015-2020. The beige area representing net transactions makes up the largest portion of positive changes, particularly during peak periods. The green area showing valuation changes is generally a smaller portion and frequently appears in both positive and negative territory, indicating price fluctuations affecting holdings. Other changes, shown as diagonal striped area, contribute minimally throughout most of the period but become more visible after 2015. By 2025, the overall 12-month holding change shows a moderate positive value of approximately 5-10 percent.

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Figure 3. Decomposition of 12-month Change in Foreign Holdings of U.S. Equities

This is an area and line chart showing annual data from 1985 to 2025. The y-axis measures percent, ranging from -50 to 90 percent. The chart displays four variables: "12 month holding change" (black line), "Net transactions" (beige area), "Valuation changes" (green area), and "Other changes" (diagonal striped area).

The 12-month holding change line exhibits significant volatility throughout the period, with several major peaks exceeding 50 percent in the late 1980s, mid-1990s, and early 2020s. There are also sharp declines where the line drops below -20 percent, notably around 1987-1988, early 2000s, 2008-2010, and briefly in 2020. Unlike the previous chart, valuation changes (green area) dominate the composition of changes throughout most periods, indicating the significant impact of market price movements on equity holdings. Net transactions (beige area) contribute a smaller portion to the changes, while other changes (diagonal striped area) remain minimal until becoming more visible after 2015. By 2025, the 12-month holding change shows a positive value of approximately 20-25 percent.

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Figure 4. Major Foreign Holders of U.S. Treasuries

This is a stacked area chart showing annual data from 2005 to 2025. The y-axis shows percent share, ranging from 0 to 100 percent. The chart displays the relative proportions of U.S. Treasury holdings by ten different countries: France (orange at top), Canada (mint green), Belgium (light blue), Ireland (cream), Cayman Islands (yellow), Luxembourg (green), United Kingdom (red), China, Mainland (pink), Japan (dark blue), and Other (gray at the bottom).

Throughout the period, the "Other" category (gray) consistently represents the largest share, occupying roughly 35-45 percent of total foreign holdings. Japan (dark blue) maintains the second largest position with approximately 15-20 percent share, though it shows a gradual decline over the period. China's holdings (pink) exhibit a notable pattern, increasing from about 15 percent in 2005 to peak around 25 percent between 2010-2015, before steadily decreasing to roughly 10 percent by 2025. The United Kingdom (red), the next largest, shows a gradual increase from less than 5 percent to nearly 10 percent. The remaining countries (Luxembourg, Cayman Islands, Ireland, Belgium, Canada, and France) each maintain smaller shares, typically below 5 percent individually, with some showing slight increases in recent years. By 2025, Japan, China, and the collective "Other" category remain the predominant holders, though with noticeably changed proportions compared to 2005.

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