The International Finance Association stated that foreign demand for US Treasury bonds is declining.

The global industry organization for the financial sector stated that as debt levels rise, foreign investors are showing signs of diversifying their portfolios and reducing their reliance on U.S. Treasury bonds. A report released by the Institute of International Finance on Wednesday showed that foreign investors' net purchases of U.S. government bonds remained stable this year, while their allocations to Japanese and European sovereign bonds increased. The association represents about 400 banks, insurance companies, and asset management institutions. "The recent market developments show early signs of portfolio diversification, particularly in cross-border government securities investments," wrote the team at IIF, composed of Emre Tiftik and Khadija Mahmood. They added, "These trends partially reflect the divergence in debt trajectories," as the proportion of U.S. debt to GDP is expected to continue rising, while Europe and Japan are on a more moderate path.