U.S.-Aligned Countries Bought $174.3 Billion Net in Treasurys

Countries most aligned with the United States made $174.3 billion in net purchases of Treasury securities excluding bills in the first eight months of 2026.

The group remained a net buyer even as purchases fell, with Asian partners leading the reduction.

Weaker currencies reduced governments’ buying power, and some used reserves instead of adding Treasurys. Higher yields in Japan and Europe offered investors alternatives to U.S. debt.

Reduced foreign demand leaves the U.S. government more reliant on private investors to finance its borrowing, making funding more sensitive to market sentiment and policy uncertainty.