US bond yields rise as foreign holdings of US bonds in January retreat from historic highs.

By admin Mar 20, 2024

As bond yields rise, foreign holdings of US Treasury bonds in January slipped from the historic high reached in December.

Data released by the US Department of the Treasury on Tuesday (19th) revealed that as of the end of January, foreign investors collectively held US Treasury bonds worth $8.02 trillion, lower than the record high of $8.06 trillion set in December.

Among the top three holders of US bonds, Japan was the only country to increase its reserves of US bonds in January, with a total increase of $15 billion from both public and private sector investors, reaching $1.153 trillion.

Meanwhile, both China and the UK saw declines in their holdings of US bonds, with China reducing its holdings by $18.6 billion to $797.7 billion, and the UK decreasing by approximately $2 billion to $763.5 billion.

US long-term Treasury bond yields rose in January. According to Dow Jones Market Data, as of 3:00 pm Eastern Time on January 31st, the yield on the US 10-year Treasury bond increased by 10.5 basis points to close at 3.965%. The 30-year Treasury bond yield also rose by 19.6 basis points to close at 4.216%.

Short-term bond yields saw a slight decline, with the 2-year Treasury bond yield dropping by 2 basis points to 4.227% in January.

However, US bond yields have since risen significantly. As of 3:00 pm Eastern Time on Tuesday (19th), the yield on the US 10-year Treasury bond was at 4.296%.

The official data from the Treasury reflects the bonds held in US custody accounts, which may not fully represent all the bonds held by a country, as some bonds may be held in custody accounts in other locations.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *