Deutsche Bank on US Fixed Income: Domestic Buyers Absorb Record Supply — Neutral

Eben@CANSLIM Research's avatarEben@CANSLIM Research

Deutsche Bank Research finds that the US fixed income market grew by $6.8trn over the last four quarters, reaching $62trn outstanding as of Q2 2026, with domestic investors absorbing the bulk of new Treasury supply. Foreign holdings of Treasuries fell to 30% of outstanding in Q2 2026, close to the multi-decade low of 29% seen in Q3 2023, while purchases from the foreign official sector are flat and foreign private buying is slowing. The domestic sector, not foreign central banks, is now funding the US budget deficit.

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