FX.co ★ Foreign Appetite for U.S. Treasuries Reverses Sharply in December

Foreign demand for U.S. Treasury bonds swung dramatically in December 2025, with net foreign buying dropping to -$41.60 billion, according to data updated on 18 February 2026. This marks a sharp reversal from November 2025, when net foreign purchases stood at a robust $78.20 billion.

The shift from strong net inflows to net selling underscores a significant change in foreign investor positioning toward U.S. government debt at year-end. While the data do not specify the underlying drivers, the sudden move from positive to negative flows suggests a notable reassessment of exposure among international holders of U.S. Treasuries during December.