The U.S. Government Accountability Office said foreign private investors held $5.4 trillion of U.S. Treasury bonds as of September 2025, more than the $3.9 trillion held by foreign public institutions, marking a shift in the composition of overseas Treasury ownership.

The GAO said foreign investors held $9.3 trillion in U.S. Treasury bonds in total, accounting for about 33% of the market. Within that, foreign private investors had become the larger holder group by September 2025. The report said the crossover point, when private holdings exceeded those of foreign public institutions, was reached in 2023.

The change was already visible in the 2024 survey of foreign securities holdings. That survey showed foreign holdings of U.S. Treasury bonds at $8.2 trillion, with $4.4 trillion held by foreign private investors and $3.8 trillion by foreign public institutions. According to the figures cited, the public-sector share fell from 59% in 2020 to 47% in 2024.

The GAO said the shift appears to reflect stronger buying by private investors rather than broad selling by foreign governments. It also said a bigger role for private investors could increase the market’s sensitivity to Treasury yields and demanded returns, because those investors are more likely to compare Treasuries with other opportunities on a risk-return basis.

The report pointed to the September 2025 Treasury auction, where investment funds were described as the main buyers. It also noted that the Federal Reserve reduced its Treasury holdings by about $1.6 trillion from 2022 to 2025 and began repurchasing short-term Treasury bonds in January 2026. Brookings, as cited in the report, said foreign private investors have tended to add to Treasury holdings even during periods of financial market stress.

Why It Matters

This is a notable change in the ownership structure of the world’s benchmark sovereign debt market. When private investors play a larger role than foreign official institutions, Treasury demand may become more responsive to yield levels, portfolio competition, and broader risk sentiment rather than reserve management priorities alone.

That matters beyond bond markets because U.S. Treasuries sit at the center of global funding and collateral conditions. Any structural change in who buys them can shape how rate moves feed into liquidity conditions across equities, credit, and crypto, even if the immediate impact on digital assets is indirect.