Foreign holdings of US Treasuries at all-time high in November, but China pulls back

*

China reduces holdings of Treasuries to lowest since Sept 2008

*

Canada raises holdings to record levels

*

US stocks also show foreign inflows

(Adds details, byline)

By Gertrude Chavez-Dreyfuss

NEW YORK, Jan 15 (Reuters) - Foreign holdings of U.S. Treasuries hit record highs in November, rising after two straight months of declines as market sentiment improved after the U.S. federal government ?ended the longest-ever shutdown in history.

The U.S. government shuttered on October 1, staying closed for a record 43 days. The shutdown ?ended on November 12, with President Trump signing a funding bill into law to reopen ?the government.

Holdings of U.S. Treasuries rose to an all-time peak of $9.355 ?trillion in November, up ?from October's $9.243 trillion, data from the Treasury Department showed on Thursday. Compared with a year earlier, Treasuries owned by foreigners were ?up 7.2% in November.

The increase in holdings was ?led by Japan, the United Kingdom, Belgium, and Canada.

Japan remained the

biggest non-U.S. holder of Treasuries

with $1.202 trillion in November, its biggest holdings since July 2022, when its ?stash of U.S. government debt hit $1.231 trillion. ?Japan's Treasuries ?have increased for 11 straight months.

The UK, the second-largest owner of Treasuries, also raised its holdings by $888.5 billion, up 1.2% from October. The UK is widely seen as a ?major custody hub, often serving as a proxy for hedge fund investment flows. Hedge funds also use other custody jurisdictions, including the Cayman Islands and the Bahamas.

Canada also boosted its holdings by 13% to a record $472.2 billion in November. That was a big turnaround from a nearly 14% drop in April with Treasury holdings of $368.4 billion as Trump hit Canada with tariffs ?on steel, ?aluminum and automobiles.

In contrast, China's stash of U.S. government debt fell to $682.6 billion in November, the lowest since September 2008, when holdings tumbled to $618.2 billion. China is the third-largest non-U.S. ?owner of Treasuries, but its holdings have declined by more than 10% since the beginning of 2025.

U.S. benchmark 10-year Treasury yields started November with a yield of 4.107%, ending nearly nine basis points lower to 4.019% by the end of that month.

On a transaction basis, foreigners bought Treasuries in November, with inflows into the sector of $85.6 billion, from outflows of $60.1 billion in the previous month. In May, there were foreign inflows ?of $147.4 billion in Treasuries, the largest since August 2022.

Foreign investors also bought $92.2 billion in U.S. stocks, compared with purchases of $60.3 billion in October.

Data also showed net overall capital inflow of $212 billion into the United States in November, after posting outflows ?of a revised $22.5 billion in October. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Chris Reese and Diane Craft)