Not exactly selling America…

The number of US Treasuries held by foreign investors was near record highs in April, even as US President Donald Trump’s Liberation Day tariffs triggered one of the steepest sell-offs in the asset class in over two decades, Bloomberg reports. Foreign holdings came in at USD 9.0 tn — just shy of March’s all-time high following sales of US bonds and notes, according to US Treasury data. This came despite concerns over a wave of outflows from American debt and equity markets following the tariff announcements.

IN CONTEXT- Trump’s tariff announcement in early April triggered a historic sell-off, with Treasuries posting their worst weekly performance in over 20 years. A weak 20-year bond auction in May added to the sell-off, though 30-year and 20-year offerings later saw better take-up.

But no mass exit: Despite this, official institutions were net buyers of long-term Treasuries. Foreign investors were net sellers of US agency bonds and equities, but increased their exposure to long-term corporate debt, suggesting selective rebalancing rather than a broad retreat.

Big buyers didn’t blink: Japan, still the top holder, increased its holdings by USD 3.7 bn to USD 1.1 tn. The UK added USD 28.4 bn, overtaking China for the number-two spot with USD 807.7 bn. Belgium — often seen as a proxy for Chinese custodial accounts — rose USD 8.9 bn to USD 411.0 bn.

China pulled back, Canada dumped: China’s holdings dropped by USD 8.2 bn to USD 757.2 bn, continuing a multi-year retreat. Canada posted the largest decline, offloading nearly USD 57.8 bn to bring its total to USD 368.4 bn. The Cayman Islands — a hub for hedge funds — also reduced holdings by USD 7.0 bn.

“The ‘Sell America’ narrative is an over-exaggeration,” Morgan Stanley’s Vishal Khanduja told Bloomberg elsewhere, though warning of “slow and bumpy [USD] depreciation” ahead. Jamie Patton of TCW Group also pushed back on talk of capital flight, saying there’s a “big difference between valuation and the reserve status of the USD or Treasuries as a de facto safe asset.”

Concerns that US Treasuries’ “safe haven status” is in jeopardy still abound, with the latest red flag being the lack of a rally during the Israel-Iran flare-up — which would typically be a haven bid moment.

THE CLOSING BELL-

The EGX30 fell 1.9% at Thursday’s close on turnover of EGP 4.5 bn (5.8% below the 90-day average). Foreign investors were the sole net sellers. The index is up 1.7% YTD.

In the green: Edita (+1.6%), Mopco (+0.4%), and Credit Agricole (+0.1%).

In the red: TMG Holding (-5.8%), Oriental Weavers (-4.6%), and Eastern Company (-4.0%).