Foreign holdings of U.S. Treasury securities surged in February, marking the largest monthly increase in a year and reaching a new record high of $9.49 trillion. This growth was primarily driven by increased holdings from Canada and Saudi Arabia.

Data released by the U.S. Treasury Department on Wednesday showed that overseas holdings rose by $197.7 billion in February compared to the downwardly revised figure from the previous month.

Canada, whose monthly holdings are typically volatile, increased its stake by $50.5 billion, bringing its total to $446.3 billion. Saudi Arabia boosted its holdings by $25.6 billion to $160.4 billion in the month preceding the outbreak of the U.S.-backed war against Iran.

Japan, the largest overseas holder of U.S. debt, increased its holdings by $14 billion to $1.24 trillion. The United Kingdom, the second-largest holder, added $17.6 billion, raising its total to $897.3 billion.

China, the third-largest holder, saw its holdings decrease by $1.1 billion to $693.3 billion.

The holdings data reflect both net transactions and changes in valuation. A key U.S. Treasury index rose by 1.8% in February.