💡EXPLAINED: America’s allies are buying 60% less of its debt.
US-aligned countries bought a net $174.3B of Treasuries in the first eight months of 2026.
That’s the lowest since 2021 and down more than 60% from a year earlier.
🌏Asia led the pullback.
Japan, the biggest foreign holder, bought just $389M, down 99%.
South Korea sold $23.8B, a record for the period. Taiwan was also a net seller.
There’s no single cause. Weak currencies, rising yields at home and unease over US policy may all play a role.
⚠️The timing matters because US debt is above $40T.
Private investors now hold about 70% of it, and they’re more price-sensitive. The 10-year yield sits at 5.02%.
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