Foreign holdings of US Treasuries rose in November

BY Reuters | TREASURY | 01/17/25 04:00 PM EST

Jan 17 (Reuters) - Foreign holdings of U.S. Treasuries rose in November but held below a record high reached in September, as China increased its portfolio of U.S. debt, data from the Treasury Department showed on Friday.

Holdings of U.S. Treasuries rose to $8.635 trillion in November from $8.583 trillion in October. Holdings had risen as high as $8.672 trillion in September.

Japan's Treasuries holdings decreased to $1.099 trillion from $1.102 trillion the previous month. Japan remains the largest foreign holder of U.S. Treasury securities. China, which is No. 2, increased its holdings to $768.6 billion from $760.1 billion in October.

Treasury yields surged heading into the Nov. 5 U.S. elections as traders bet that Republican electoral victories would lead to policies that boost growth and potentially inflation.

Republicans won control of the U.S. House of Representatives and the Senate, and Republican President-elect Donald Trump is due to be sworn in on Monday.

Treasury yields eased in the second half of November before climbing again, with benchmark 10-year yields reaching a 14-month high earlier this week.

(Reporting by Karen Brettell; Editing by Leslie Adler)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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