Foreign Investors Pour $1T into US Stocks as Treasury Buying Slumps

Key Facts

1Foreign investors poured $1 trillion into U.S. stocks in 2026 despite concerns over federal debt and inflation.

2Foreign buying of U.S. Treasuries dropped by 59%, potentially leading to higher interest rates for loans.

Foreign investors poured $1 trillion into the U.S. stock market in 2026 despite persistent concerns over federal debt and inflation. According to 24/7 Wall St., foreign buying of U.S. Treasuries dropped by 59% during the same period, a shift that could potentially lead to higher interest rates for various types of loans.

This reallocation of capital occurs alongside signs of persistent price pressure, as the Core PPI MoM reached 0.7% on October 15, 2026, exceeding the 0.3% forecast. Additionally, Net Long-Term TIC Flows reported on October 16, 2026, showed a significant influx of $279.2 billion, far surpassing the anticipated $75.2 billion.

The market is awaiting the release of the MBA 30-Year Mortgage Rate on October 21, 2026. This data point is particularly relevant as reduced foreign appetite for government debt may impact mortgage costs, which stood at 7.5% in the previous reading.