Foreign investors sold $41 billion of U.S. Treasuries in April as President Donald Trump unveiled his global tariff regime.
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Data from the U.S. Treasury Department shows that foreigners sold a net $40.8 billion of American bonds that had more than one year to maturity. It was the largest amount of U.S. government bonds sold since December 2024.
The Treasury Department data provides a first look into demand for U.S. government bonds after Trump’s tariffs went into effect. Investors have been focused on foreign demand for U.S. Treasuries amid growing unrest in the bond market, where yields have spiked in recent months.
Growing Concerns
Worries are growing that the excessive amount of U.S. debt, combined with President Trump’s high tariff rates, will make foreign investors pullback from buying U.S. government bonds. U.S. Treasuries experienced a historic selloff in April as the yield on the 30-year note saw its biggest one-week increase since 1987, according to market data.
Analysts also note that foreign investors appear to be realigning their portfolios as market sentiment on international assets, such as German government bonds, improves. The American government debt market remains the world’s largest at $28.6 trillion. Foreigners hold $9.01 trillion of American debt, or 31.5% of the entire market, up from $8.30 trillion a year ago.
Japan and the United Kingdom are the biggest holders of U.S. debt, followed by China.
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