Global investors are showing early signs of diversification away from U.S. Treasuries as worldwide debt levels climbed to a record $353 trillion by the end of March of 2026, according to a new report from the Institute of International Finance (IIF) published on 6 May.
The report said international demand for Japanese and European government bonds has strengthened in recent months, while demand for U.S. Treasuries has remained broadly stable.
“This highlights that there are some efforts by international investors diversifying away from U.S. Treasuries,” said Emre Tiftik, Director at the Institutue for International Finance (IIF) for Global Markets and Policy, during a webinar discussing the findings.
The IIF said there is no immediate risk to the roughly $30 trillion U.S. Treasury market, but warned that long-term trends point to rising fiscal pressures in the United States.
Record debt levels
The IIF’s quarterly Global Debt Monitor found that global debt rose by more than $4.4 trillion in the first quarter of 2026, marking the fastest increase since mid-2025 and the fifth consecutive quarterly rise.
Much of the increase was driven by U.S. government borrowing, while China also saw a sharp rise in debt among non-financial corporate borrowers, particularly state-owned firms.
Outside the world’s two largest economies, debt levels in advanced markets edged slightly lower, while emerging markets excluding China recorded a modest rise to a record $36.8 trillion.
The report said global debt stood at around 305% of world economic output, broadly stable since 2023, but with diverging trends between advanced and emerging economies.
Debt ratios in mature markets have been gradually declining, while emerging economies continue to see steady increases.
The IIF warned that structural pressures are likely to push both government and corporate debt higher over the medium to long term.
Among those they listed ageing populations, higher defence spending, energy security needs, cybersecurity investment and artificial intelligence-related capital expenditure.
The U.N. human rights office said Israeli forces may be committing unlawful killings near the military armistice line in Gaza, after data showed that ...
Israeli forces carried out more than 120 airstrikes across southern and eastern Lebanon on Tuesday (26 May), killing at least 31 people in one of the ...
Hamas has confirmed the death of its armed wing chief, Mohammad Odeh, who was killed in an Israeli strike in Gaza City, according to the Israeli milit...
Spanish police visited the headquarters of the ruling Socialist Party (PSOE) in Madrid on Wednesday as part of a widening High Court investigation int...
Tajikistan is hosting the Fourth International Conference on the International Decade for Action “Water for Sustainable Development” from 25 to 28...
Israeli forces carried out more than 120 airstrikes across southern and eastern Lebanon on Tuesday (26 May), killing at least 31 people in one of the heaviest bombardments in recent weeks, according to Lebanese security and health officials.
Hamas has confirmed the death of its armed wing chief, Mohammad Odeh, who was killed in an Israeli strike in Gaza City, according to the Israeli military and Gaza health officials.
Spanish police visited the headquarters of the ruling Socialist Party (PSOE) in Madrid on Wednesday as part of a widening High Court investigation into alleged attempts to interfere with judicial proceedings involving party and government figures.
Tajikistan is hosting the Fourth International Conference on the International Decade for Action “Water for Sustainable Development” from 25 to 28 May in Dushanbe, bringing together thousands of participants from governments, international organisations and financial institutions.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for 26 May, covering the latest developments you need to know.
Iran has called Monday's U.S. strikes on it 'a gross violation' of their ceasefire. The U.S. military said it carried out defensive strikes in southern Iran after boats were seen laying mines in the Strait of Hormuz. Meanwhile, the U.S. says a peace deal may require several more days.
Shortly after nine o’clock on Tuesday morning (26 May), a sleek white train eased into Tbilisi’s central railway station, a couple of minutes behind schedule, carrying passengers from Baku for the first time since 2020.
The new AnewZ documentary, TARGET: Yerevan, builds its explosive case on exclusive, secret recordings originally published by Minval Politika.
Dozens of people were killed in Israeli strikes on Lebanon on Tuesday, Lebanese officials said, straining a fragile ceasefire agreed between the countries in April. The attacks came as Iran accused the U.S. of violating a separate ceasefire with strikes near the Strait of Hormuz.
Spanish police visited the headquarters of the ruling Socialist Party (PSOE) in Madrid on Wednesday as part of a widening High Court investigation into alleged attempts to interfere with judicial proceedings involving party and government figures.
Latvia is strengthening its anti-drone capabilities along its borders with Russia and Moscow-allied Belarus after several drones entered the NATO member’s airspace, according to a senior military official.
NASA has revealed the next phase of its plan to build a permanent base on the Moon, outlining the vehicles, robotic landers and hopping drones it intends to send as part of the project.
Britain and Poland are set to sign a new defence and security treaty on Wednesday (27 May), deepening cooperation between the two NATO allies as European governments respond to what they describe as a growing range of hostile threats across the continent.
Chinese investigators have uncovered hidden tunnels, missing worker trackers and fake underground walls during an initial investigation into the country’s deadliest mining disaster in more than 15 years.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment