Foreign demand for US long-term securities surged to $206bn in April, outpacing trade deficits and supporting the dollar index.
Foreign investors bought $206bn of long-term US securities in April, the highest since November 2025, compared with $96bn in March. The inflows offset the $719bn US trade deficit over the past year, reinforcing demand for the dollar.
Over the twelve months to April, foreign holdings of US securities reached a record $1825bn. US-G6 yield differentials and economic outperformance continue to favor the dollar, with two-year bond spreads suggesting further upside for the DXY.
The dollar index (DXY) remains supported by strong underlying demand and favorable rate differentials, with potential to trade closer to 102.00.