According to interest rate strategists at TD Securities, foreign investors have been purchasing an increasingly large share of US Treasury auctions in recent months. This trend has alleviated market concerns that the safe-haven status of US debt could be compromised and that massive deficits might drive away foreign capital. Data from the US Treasury Department analyzed by TD Bank shows that foreign and international accounts were allocated approximately 19% of auction shares in January, the highest level in nearly three years. Over the past five years, this share reached a peak of nearly 25% in early 2022 before falling below 10% in November 2024.

The US Treasury issues seven regular securities with maturities ranging from two to thirty years, as well as three types of Treasury Inflation-Protected Securities (TIPS). TD Securities strategists Gennadiy Goldberg, Jan Nevruzi, and Molly Brooks stated in a report that the increase in auction allocations to foreign accounts has been "relatively broad-based." Goldberg noted in an interview, "As more data comes in, we are growing more skeptical that this 'Sell America' theme is more narrative than reality."

The "Sell America" theme emerged in April 2025 when US President Donald Trump announced broad tariffs, causing market turbulence. The theme regained attention last month when Trump revived plans to acquire Greenland, despite opposition from NATO ally Denmark. Another set of US Treasury data shows that foreign investors sold $53 billion in US Treasuries following the April 2025 tariff announcement but subsequently increased their holdings by $354 billion through November.

Goldberg commented, "When you ask many foreign institutions about their Treasury holdings, they admit feeling uneasy about other investors selling, but most—at least in our experience—do not admit to reducing their own positions." According to TD Bank data, foreign participation in auctions rose significantly in November and December, suggesting that rising term premiums—the extra yield on 10-year Treasuries compared to shorter maturities—were one of the attracting factors.

The US Treasury auctioned $58 billion in three-year notes on Tuesday and plans to auction 10-year and 30-year bonds in the following two days. Allocation data for these auctions is scheduled for release on February 24. Goldberg suggested that investors may be forced to set aside concerns due to a lack of alternatives. A weaker US dollar indicates that foreign investors may be choosing to hedge currency risks while continuing to increase their holdings of dollar-denominated assets. "From a diversification perspective, investors really have no other choice," he said.