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.

EGX30

30,248

-1.9% (YTD: +1.7%)

USD (CBE)

Buy 50.60

Sell 50.73

USD (CIB)

Buy 50.60

Sell 50.70

Interest rates (CBE)

24.00% deposit

25.00% lending

Tadawul

10,611

+0.2% (YTD: -11.9%)

ADX

9513

+1.0% (YTD: +1.0%)

DFM

5352

+1.6% (YTD: +3.7%)

S&P 500

5968

-0.2% (YTD: +1.5%)

FTSE 100

8775

-0.2% (YTD: +7.4%)

Euro Stoxx 50

5234

+0.7% (YTD: +6.9%)

Brent crude

USD 77.01

-2.3%

Natural gas (Nymex)

USD 3.85

-3.6%

Gold

USD 3385.70

-0.7%

BTC

USD 102,858.30

-0.8% (YTD: +9.9%)

S&P Egypt Sovereign Bond Index

878.77

+0.1% (YTD: +13.0%)

S&P MENA Bond & Sukuk

144.12

-0.1% (YTD: +3.0%)

VIX (Volatility Index)

20.62

-7.0% (YTD: +18.9%)

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%).

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