• Sustained foreign inflows into U.S. Treasuries and equities, as noted by Treasury Secretary Scott Bessent, align with November 2025 TIC data showing net foreign purchases of long-term U.S. securities at $221.8 billion.
  • The inflows reflect broader U.S. economic strength, including FY 2025 receipts growth to $5.24 trillion, amid ongoing trade deficits and global market trends.
  • Under the America First Trade Policy, Treasury is monitoring trading partners for currency manipulation and other practices, while implementing measures like CFIUS fast-tracking to balance investment with national security.

Treasury Secretary Scott Bessent emphasized that foreign funds continue to flow strongly into U.S. Treasuries and equities, a trend backed by the latest Treasury International Capital (TIC) data. In November 2025, net foreign purchases of long-term U.S. securities hit $221.8 billion, including $220.2 billion after adjustments for stock swaps, according to official figures. This surge followed a net outflow of $37.3 billion in October 2025, highlighting a sharp reversal that underscores the resilience of U.S. financial markets.

Efforts to track these inflows have revealed a massive net TIC inflow of $212.0 billion in November, driven by $167.2 billion in private foreign inflows and $44.9 billion in official inflows. Foreign holdings of U.S. Treasury bills saw a modest increase of $0.4 billion in November, after a $21.8 billion rise in October. Without this sustained interest, the U.S. might face higher borrowing costs, but for now, the appetite remains robust.

What institutional investors are really focused on is the underlying economic strength, said a source familiar with the matter, pointing to FY 2025 receipts growth to $5.24 trillion, or 17.2% of GDP, from income taxes, capital gains, and duties. This comes amid a $261.4 billion widening trade deficit, suggesting that foreign confidence is buoyed by domestic fiscal performance. Global equities gained in early 2026, led by emerging markets, Asia Pacific, and Europe, further supporting U.S. equity inflows.

Under President Trump's America First Trade Policy, Treasury—led by Bessent—is keeping a close eye on trading partners for currency manipulation, capital controls, macroprudential measures, and government investment vehicles like pension funds. Joint statements were issued with Japan, Switzerland, Malaysia, Thailand, Korea, and Taiwan in Spring 2025, aiming to foster fair practices. In a move to streamline investments, CFIUS introduced a May 2025 "Fast-Track" for allied investors to expedite reviews, prioritizing critical sectors, manufacturing, and supply chain resilience while welcoming non-threatening foreign direct investment.

We have a constant balance with global partners, which we consider allies in economic stability, not just competitors, paraphrased a Treasury official who declined to be named. It's much more of a convergence between investment and security. Attempts to reach Bessent's office for additional comments were unsuccessful, but sources indicate that vigilance on interventions and capital flows may deter some inflows in the long term.

Market trends point to a steepening yield curve, with 10-year Treasury yields projected at 3.75% by year-end 2026. Emerging market portfolio inflows totaled $724 billion over recent periods, though offset by $653 billion net outflows from China, echoing ongoing trade tensions tracked in Treasury FX reports. In the short term, continued inflows are likely if U.S. growth persists, with December 2025 TIC data due February 18, 2026. Experts anticipate steady equity gains and yield curve normalization, but the landscape remains fluid as policies evolve to counter unfair practices and sustain dollar strength.

Correction: An earlier version misstated the net TIC inflow figure; it has been updated to $212.0 billion for November 2025.