In the depths of the financial crisis, the borrowing needs of the U.S. more than tripled, surpassing $2 trillion on an annual basis each year since 2009. Foreign investors and Wall Street banks bought most of the debt at government bond auctions.
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As the U.S. stiffened its financial regulations and the crisis atmosphere abated, demand from those quarters waned. Individual investors -- through their stakes in fixed-income mutual funds -- have stepped up to fill the gap.
Less than 15% of Treasury purchases in October auctions were made by foreign investors, down from nearly 43% in June 2009.
Today, domestic bondholders account for greater than half of the more than $14 trillion in marketable debt outstanding.
(END) Dow Jones Newswires
December 10, 2017 15:16 ET (20:16 GMT)