The debate over US Treasury ownership has intensified as market turbulence and investor uncertainty rise, fueled by former President Donald Trump’s tariff policies. On Tuesday, April 22, the yield on the 10-year Treasury note reached 4.41%, according to over-the-counter interbank trading data.

Global investors are closely watching who holds the debt supporting the US government’s borrowing spree—and what could happen if these holders start pulling out. US Treasuries, long seen as a safe-haven asset due to their low credit risk, are backed by the full faith of the US government and help fund federal spending.

### **US Treasury Market Nears January Highs**

Financial market instability, driven by Trump’s trade deficit policies, has left the Treasury market in flux. Typically, such political uncertainty drives investors toward Treasuries, lowering yields. But this time, the opposite occurred: 10-year Treasury yields briefly fell below 4% before climbing to nearly 4.7%, just 0.1% below pre-Trump levels.

Foreign investors hold about **33% of all outstanding US debt**, but recent market movements suggest they may be retreating.

### **Who Holds US Treasury Debt?**

As of late February, just before the recent sell-off, Treasury data showed the top foreign holders:

- **Japan**: $1.125 trillion

- **China**: $784 billion

- **UK**: $750 billion

- **Cayman Islands, Luxembourg, Canada, Belgium, France, Ireland, and Taiwan**: Each holds between $295 billion and $418 billion

Other major holders include **Switzerland ($291B), Hong Kong ($274B), Singapore ($260B), and India ($228B)**. Combined, foreign entities held **$8.817 trillion** in US Treasuries by February’s end.

### **What If Foreign Investors Exit?**

Economists warn that a sustained foreign sell-off could disrupt US finances. Large-scale selling would depress bond prices, driving yields higher. This could force the Federal Reserve to hike borrowing costs to attract buyers.

One X user commented:

> *"Markets are quietly pricing in what Washington won’t admit: systemic decay. The dollar’s decline and surging yields signal eroding global trust and mounting debt pressure."*

In 2023, the US spent **$881 billion on interest payments alone**—more than Medicare or defense spending. With the national debt exceeding **$36 trillion**, interest costs are skyrocketing.

### **Record Interest Costs Loom**

The Congressional Budget Office (CBO) predicts interest payments will hit **$952 billion this year (3.2% of GDP)** and could reach **5.4% of GDP by 2055**. By the 2030s, the average interest rate on US debt may exceed economic growth—a major red flag for long-term fiscal stability.

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