Foreign Central Banks Remain Steady Buyers of U.S. Debt, Fed Reports

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Foreign central banks increased their holdings of U.S. Treasury and federal agency debt during the most recent reporting week, according to data released by the U.S. Federal Reserve on Thursday.

In the week ending February 13, the Fed reported that its custody holdings of Treasury and agency debt for overseas central banks rose by $9.62 billion, reaching a total of $2.122 trillion. Specifically, foreign central banks purchased approximately $3.57 billion in Treasury securities, bringing their total holdings to $1.271 trillion.

Additionally, these institutions acquired $6.06 billion in debt from government-sponsored agencies such as Fannie Mae and Freddie Mac, boosting their total holdings in this category to $851.1 billion.

Overseas central banks, particularly those in Asia, have significantly expanded their holdings of U.S. debt in recent years. Currently, they collectively own more than a quarter of marketable U.S. Treasuries, underscoring their substantial presence in the global debt market.