Foreign demand for US government debt is no longer keeping pace with the country's growing borrowing needs. The share of foreign official assets in US Treasury bonds has fallen to 12.5% of total outstanding issuance, the lowest level in the current century.
This share has declined by 24 percentage points since its peak in 2009. During the same period, US tradable Treasury debt surged by $23 trillion, equivalent to 379%, reaching $29.1 trillion, near historic highs.
Meanwhile, the amount of US Treasury bonds held by foreign official institutions has increased by only $1.5 trillion, or 63%, to approximately $3.9 trillion. China's holdings of US Treasury bonds have also fallen by more than 50% to $651.1 billion, the lowest level since September 2008.
The United States continues to issue record-breaking levels of debt.