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Story summary
- Canada has become one of the largest holders of U.S. Treasury securities, with holdings at $464.6 bn in August 2026.
- China’s Treasury holdings fell to $590.7 bn in August 2026, a $27.3 bn drop from July.
- Brad Setser said China may be using Canadian and European custodians to mask $300-$500 bn of U.S. debt.
- Higher U.S. yields—about 5.1% versus 3.83% for Canada—are prompting Canadian investors to buy Treasuries.