Turkey Isn't Alone In Dumping Treasuries

Emerging markets, particularly oil importers like China and Turkey, significantly liquidated US Treasuries in March 2026 amid currency pressures and oil-driven inflation concerns. This trend highlights a growing headwind for US government debt as foreign holders reduce exposure during periods of market stress.

Key Takeaways

• 1.Oil-importing emerging markets significantly reduced their US Treasury holdings in March 2026, marking the largest drop since 2011.
• 2.China led the net sales of US Treasuries, contributing $56 billion to the overall decline.
• 3.The liquidations are driven by currency stabilization efforts (FX intervention) and a deeper oil crisis stoking inflation expectations.

Table of Contents

• Turkey Isn't Alone In Dumping Treasuries
• March Saw the Largest Treasury Sale Since at Least 2023
• UST Holdings Often Fall During Periods of Market Stress

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