The U.S. indicates that foreign investors will be net buyers of long-term financial assets exceeding $1.55 trillion by 2568, led by stocks and government bonds, defying concerns that Trump's tax policies will undermine confidence.
On February 19, 2026, at 5:11 AM, Bloomberg News reported that data from the United States Department of the Treasury, released on Wednesday, indicated that: Foreign investors are projected to significantly increase their purchases of U.S. financial assets in 2568, primarily driven by U.S. stocks and treasuries, reflecting a rejection of concerns that the world is "selling America."
In 2568, foreign investors are projected to make net purchases of a total of $1.55 trillion in long-term U.S. financial assets, up from $1.18 trillion the previous year. Flows are expected to be in U.S. stocks ($6.585 billion) and U.S. government bonds ($4.427 billion).
These figures contradict concerns that Donald Trump's protectionist trade policies and threats of tariffs could cause foreign investors to withdraw from U.S. markets and reduce their holdings of the dollar.
Previously, some pension funds in Europe, such as those from Denmark and the Netherlands, had signaled a reduction or were preparing to reduce their holdings of U.S. government bonds. However, U.S. Treasury Secretary Scott Bescent has consistently maintained that the government's economic policies continue to reinforce the U.S.'s status as the world's leading destination for capital.
Financial market analysts indicate that despite recent speculative selling of the dollar due to geopolitical risks, U.S. government bonds remain a key asset in global reserve portfolios and are unlikely to be replaced.
Strategists from BNY, one of the world's largest asset managers, stated that the weakening of the dollar last year became an incentive for foreign investors to increase their holdings in US stocks.
Treasury data also indicates that, in addition to stocks and Treasuries, foreign investors were net buyers of $3.278 billion in U.S. corporate bonds and $1.129 billion in quasi-government securities such as Fannie Mae and Freddie Mac.
Regionally, Europe was the largest source of foreign capital, with net inflows of $8.728 billion, followed by the Cayman Islands at $2.772 billion and Japan at $5.6 billion, while Canada accounted for $8.44 billion.
However, China was a net seller of long-term U.S. financial assets totaling $2.086 billion, with its Treasury holdings at the end of the year standing at $6.835 billion, the lowest since 2551.
A Bloomberg report earlier this month indicated that Chinese regulators had advised financial institutions to reduce their holdings of U.S. government bonds due to concerns about concentration risk and market volatility.
In December alone, foreign holdings of government bonds decreased by $8.84 billion to $9.27 trillion. Japan's holdings fell by $1.72 billion to $1.19 trillion, and the United Kingdom's by $2.3 billion to $8.66 billion.
refer : bloomberg.com
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