Türkiye has resumed purchasing U.S. Treasury bonds for the first time in nearly a decade, marking an end to the sell-off trend that began in 2016 amid political tensions with the United States.
Türkiye increases US bond holdings
According to a source familiar with the matter, Türkiye’s decision to re-enter the U.S. bond market comes after years of geopolitical strains that significantly reduced the country’s holdings.
Bloomberg reported that the Central Bank of Türkiye (CBRT) initiated bond purchases to normalize reserve policies after achieving a healthier level of foreign exchange reserves.
Data from the U.S. Treasury Department indicates that Türkiye’s U.S. bond holdings increased by $10 billion over the past year, reaching $12 billion.
At its peak in the early 2010s, Türkiye held nearly $80 billion in U.S. bonds, but significant reductions occurred during Donald Trump’s first presidential term due to escalating…
