Foreign capital is moving into US stocks at the fastest rate seen this century. According to Deutsche Bank, inflows into American equities averaged 2.8% of GDP for the year ending in June 2026, while government bond purchases stood at 2% of GDP.
This shift marks the first time in the current century that equity investments have consistently exceeded bond buying, excluding periods of market disruption. George Saravelos of Deutsche Bank described this trend as a significant transformation within US asset markets.
The US national debt surpassed $40 trillion in August 2026. By mid-September 2026, the 10-year Treasury yield rose above 5%, and the 30-year yield reached 5.32%, up from 4.83% at the beginning of the year.
As of June 2026, foreign holdings of US Treasuries totaled approximately $9.3 trillion, accounting for 30–32% of publicly held debt. Private investors are currently the primary drivers of equity demand, while central banks and sovereign funds remain more cautious.
