Robust Foreign Demand for US Debt Auctions Allays Fears, TD Says

Foreign buyers of Treasury debt have been scooping up a growing share of note and bond auctions in recent months, allaying fears that tarnished haven status and large deficits would drive them away, according to interest-rate strategists at TD Securities.

Foreign and international accounts were allotted about 19% of the auctions in January, the largest share in nearly three years, Treasury Department data analyzed by TD show. In the past five years, the share has been as high as nearly 25% in early 2022, from which it dropped to under 10% in November 2024.