Who has been buying US debt?: US Rates Research: Flow of Funds

Research evidence excerpt

Who has been buying US debt?: US Rates Research: Flow of Funds

FICC Research

Interest Rates

15 June 2026

US Rates Research: Flow of Funds

Who has been buying US debt?

The Fed's flow of funds data show that fixed income issuance

rose in Q1 on heavier corporate supply. For both the quarter

and the past year, mutual funds, foreign investors, and Demi Hu, CFA +1 212 526 7398

pensions/insurance companies remained the dominant demi.hu@barclays.com

buyers, with banks stepping up their purchases. BCI, US

Samuel Earl

+ 1 212 526 5426

The Fed recently released its Z1 data series (known as the flow of funds) for Q1 26,1 which sheds samuel.earl@barclays.com

light on fixed income supply and demand dynamics. BCI, US

Anshul PradhanQuarter over quarter, net issuance rose about $250bn, driven by a sharp rebound in corporate

+1 212 412 3681

bond supply, alongside modestly higher agency and muni issuance, while Treasury ex-T-bills anshul.pradhan@barclays.com

supply declined somewhat. On the demand side, both domestic and foreign investors stepped BCI, US

up, particularly banks.

On a year over year basis, net supply to investors on a four-quarter basis declined from $3.4tn to

$2.9tn, led by Treasuries ex-Bills. Mutual funds, foreign investors, and pensions/insurance

remained the dominant buyers, with banks and MMFs also stepping up their purchases.

Flow of funds in Q1 26 versus Q4 25

Figure 1 and Figure 2 show the breakdown of net demand for and supply of fixed income across

key investor groups and asset classes for Q1 26 and Q4 25, respectively.

Net issuance rose to $748bn in Q1 26, from $491bn in Q4 25, driven by a $244bn increase in

corporate bond issuance, to $334bn, alongside higher agency issuance at $77bn and muni

issuance at $37bn.