Slice in Brazilian US public debt financing went from 4.2% of the total to 2.3% in 10 years
Brazil has reduced its participation in the purchase of US public debt securities. The Brazilian market represented 4.2% of the total treasuries Foreigners in 2014. The slice fell to 2.3% in 2024.
Another emerging country made a similar movement, but at a more drastic level: China. Asian power reduced the portion of US securities from 20.2% to 8.8% in 10 years.
China remains one of the biggest financiers of the papers, but has invested in other markets and diversifying the wallet.
Os treasuries They are US public debt titles issued by the local Treasury to fund the government. They function as a loan: who buys receives interest in return.
These are investments considered less volatile and influenced by interest rates. Read in the infographic below how was the participation of China and Brazil since 2014:
In nominal terms (in dollars), both countries also diminished the slice of titles. In the case of Brazil, they were $ 256 billion in 2014. It went to $ 202 billion in 2024.
The height of Brazilian US debt financing was in 2018, when it exceeded the US $ 300 billion mark.
In the case of China, the nominal fall was more pronounced. They were $ 1.24 trillion in 2014, which went to $ 759 billion in 2024. It represents a 39%retraction.
OS TREASURIES EM 2025
In recent years, China has used to be the 1st or 2nd largest financier of US Treasury Foreign Titles. The scenario changed in 2025.
The Asian nation was in 3rd place in the ranking of the stock of papers in May 2025, surpassed by the UK.
The list is led by Japan, which has $ 1.14 trillion treasuries (12.6% of the total). Brazil is in 14th place.
Wallet diversification
Chief economist at the Risk Rating Agency, Alex Agostini estimates that the reduction of participation in US securities by China and Brazil can be explained by an investment diversification strategy of countries.
According to him, investments from other countries have become more attractive over the years-specially after Covid-19 pandemic.
“Historically, we had the American title as always refuge. But then they came to have other interesting titles. More recently, Japan and Europe as well. So, it can be wallet diversification.”declared the expert to Poder360.
Specifically for 2025, another factor tends to affect investments in treasuries: The uncertainties caused by the tariff of US President Donald Trump (Republican Party).
He imposed rates on imports from various nations. But it also managed to negotiate with some governments. All this movement brings volatility to the US economy, which makes the treasure titles less attractive.
