From the CI SBH Fixed Income Team
Foreign buyers have been a meaningful source of demand for US bonds in the last 25 years. The chart below shows Rest of World (ROW) holdings of US Treasury, Corporate, and Agency debt securities from the Federal Reserve’s Financial Accounts of the United States release.
- As of March 2025, foreign buyers held 33.5%, 28.6%, and 11.9% of outstanding US Treasuries, corporates, and agencies, respectively.
- Recent dollar weakness, proposed shifts in the global trade landscape, and US budget uncertainty have raised questions about the attractiveness of US debt for foreign investors.
- We continue to watch these dynamics as changes in foreign demand could significantly impact US rates and corporate spreads.
Source: US Federal Reserve as of 3/31/2025.
As of March 31st, 2025. This update provides an overview of certain broad-based Fixed Income topics and does not include performance of the Segall Bryant & Hamill Fixed Income styles. Past performance cannot guarantee future results. All investments involve risk, including the possible loss of capital. All opinions expressed in this material are solely the opinions of Segall Bryant & Hamill. You should not treat any opinion expressed as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of the manager’s opinions. The opinions expressed are based upon information the manager considers reliable, but completeness or accuracy is not warranted, and it should not be relied upon as such. Market conditions are subject to change at any time, and no forecast can be guaranteed. Any and all information perceived from this material does not constitute financial, legal, tax or other professional advice and is not intended as a substitute for consultation with a qualified professional. The manager’s statements and opinions are subject to change without notice, and Segall Bryant & Hamill is not under any obligation to update or correct any information provided in this material.
