The Credit Market Lens: Still Buying America

There is little evidence of the “Sell America” trade. More than a year after “Liberation Day,” signs of a structural foreign retreat from U.S. assets – driven by fiscal, political, or dollar concerns – remain scarce. U.S. credit is seeing significant inflows, but it’s a more nuanced picture for Treasuries. Foreign net purchases of U.S. corporate bonds are on track to set a record this year. For U.S. Treasuries, foreign net purchases, while positive, are at a post-2021 low. Relative value underpins shifting trends for investors in Japan. With 10-year Japanese government bond (JGB) yields comparing favorably with U.S. Treasury yields on a currency-hedged basis, Japanese investors have become net sellers of long-term U.S. debt. U.S. assets still offer a potential hedge when risk sentiment softens. Relatively attractive Treasury yields versus other G-10 markets, combined with supportive U.S. dollar trends, suggest that many investors continue to view U.S. assets as a hedge against global risks. Foreign demand for U.S. assets – especially credit – remains resilient amid broader macro and market uncertainties. More than a year after “Liberation Day” in April 2025 stoked concerns of a broad-based “Sell America” trade, we’re still not seeing This article was written by PIMCO 2.72K Followers Follow PIMCO is a global leader in active fixed income. With our launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. In the 50 years since, we have worked relentlessly to help millions of investors pursue their objectives – regardless of shifting market conditions. As active investors, our goal is not just to find opportunities, but to create them. To this end, we remain firmly committed to the pursuit of our mission: delivering superior investment returns, solutions and service to our clients. Visit PIMCO’s blog. Subscribe To Get PIMCO Insights Delivered Directly to Your Inbox.