Which 10 Countries Hold Most of the U.S. National Debt?

Foreign countries collectively hold $8.8 trillion in U.S. government debt. These holdings stem from trade links, reserve management, sovereign wealth strategies and global investment practices. Motivations differ—stability, liquidity, currency defense or financial intermediation—but the totals underline how central U.S. Treasuries are to the global financial system. Below is a ranked overview of major foreign holders, from smallest to largest, with a brief explanation of why each holds U.S. government debt.

Germany ($97 Billion)

Germany’s relatively modest U.S. debt holdings reflect a policy of fiscal prudence and diversified reserves. Although Germany is the eurozone’s largest exporter, Berlin tends to limit concentrated exposure to any single foreign asset. U.S. Treasuries are used selectively—often as a temporary safe haven during periods of regional economic or political stress.

Mexico ($103 Billion)

Mexico’s economy is closely linked to the United States through trade and remittances. Holding dollar-denominated assets helps Mexican authorities and private institutions hedge peso volatility and maintain liquidity for cross-border commerce. Given that a large share of Mexico’s exports flow to the U.S., dollar reserves act as a practical buffer against sudden policy or market shifts.

South Korea ($125 Billion)

South Korea’s export-driven economy—particularly in technology—requires reserve strategies that stabilize the won and preserve trade competitiveness. U.S. Treasuries offer low-risk liquidity during global slowdowns and geopolitical uncertainty. In a region where tensions can quickly affect markets, Treasuries are a core element of financial risk management.

Saudi Arabia ($138 Billion)

Saudi Arabia channels oil revenues into a diversified reserve mix that includes U.S. securities. Treasuries help anchor credibility in global markets and provide liquid funding that supports the Kingdom’s domestic development plans. In an economy sensitive to oil price swings, U.S. debt serves as a reliable store of value and a way to manage foreign-exchange exposure.

Norway ($158 Billion)

Norway’s Government Pension Fund Global stewards oil-generated wealth for future generations and emphasizes long-term preservation over short-term returns. U.S. Treasuries act as financial ballast within that fund, offering low-risk liquidity and portfolio stability while broader investments pursue higher yields worldwide.

Brazil ($202 Billion)

Brazil’s macroeconomic environment can be volatile, with inflationary spikes and political shifts affecting investor confidence. U.S. Treasuries offer the central bank and institutional investors a liquid, credible asset to demonstrate fiscal responsibility and to manage external liabilities, helping stabilize markets during periods of domestic uncertainty.

Hong Kong ($255 Billion)

Hong Kong’s currency peg to the U.S. dollar requires substantial dollar assets to defend the exchange rate. Large financial flows through the territory—both public and private—mean Treasuries are a preferred reserve asset, offering liquidity and reliability to support the peg and serve as a buffer in times of market stress.

Taiwan ($282 Billion)

Taiwan’s economy is heavily tied to semiconductor exports. U.S. Treasuries are used to stabilize foreign reserves and to hedge against risks stemming from cross-strait tensions and global demand swings. Holding Treasuries helps protect the currency and ensures liquidity when external conditions rapidly change.

France ($332 Billion)

France uses U.S. Treasuries as part of a diversified reserve approach, providing access to dollar liquidity if the eurozone faces stress or political fragmentation. Dollar assets are a tactical complement to euro-denominated holdings and can be deployed to meet short-term liquidity needs or to respond to currency-market pressures.

Canada ($379 Billion)

Close economic integration and similar financial systems mean Canadian banks, pension funds and reserve managers frequently treat U.S. Treasuries like domestic-grade assets. Cross-border trade, correlated interest-rate cycles and longstanding banking ties make dollar-denominated government bonds a practical part of Canada’s foreign-asset mix.

Cayman Islands ($419 Billion)

Large U.S. debt figures attributed to the Cayman Islands largely reflect the jurisdiction’s role as a financial intermediary. Many hedge funds, mutual funds and corporate entities book holdings through Cayman structures. As a result, the high total is more about global institutional activity routed through the territory than domestic government reserve policy.

Luxembourg ($424 Billion)

Luxembourg is a global fund and financial-services hub; many investment vehicles use the country as a domicile. U.S. Treasuries frequently pass through Luxembourg-managed funds as a dependable, liquid asset class. Consequently, totals tied to Luxembourg often represent international fund flows rather than a domestic policy decision.

United Kingdom ($723 Billion)

London’s financial center channels substantial purchases of U.S. Treasuries across a wide array of institutions—pension funds, asset managers, banks and international investors. Historical ties and deep financial linkages with the U.S. make Treasuries a central instrument for reserve and trading operations conducted through the U.K.

China ($759 Billion)

China remains a major foreign holder despite reducing holdings from peak levels. Treasuries are a key tool for managing the yuan and preserving export competitiveness. Holdings support monetary policy flexibility and act as a strategic buffer amid trade frictions and geopolitical rivalry.

Japan ($1 Trillion+)

Japan is the largest foreign holder of U.S. government debt. High domestic savings, an aging population and institutional demand from insurance companies and pension funds drive a consistent appetite for safe, liquid dollar assets. U.S. Treasuries meet those needs, offering stability, deep liquidity and easy tradability for Japanese reserve managers and investors.

Overall, the prominence of U.S. Treasuries across this diverse group of countries highlights their role as a cornerstone of international finance—serving purposes from monetary stabilization and currency defense to liquidity management, portfolio diversification and intermediation through global financial centers.