Global Debt Nears Record $353 Trillion as Market Reduces Reliance on US Treasuries
According to a report by the Institute of International Finance (IIF), global debt surged to a new record high of nearly $353 trillion by the end of March this year. Investors are diversifying their portfolios and reducing their reliance on US Treasuries, with increasing demand for Japanese and European government bonds.
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Central News Agency (London, May 6, comprehensive foreign news report) -- The Institute of International Finance (IIF) reported today that as of the end of March this year, total global debt climbed to a new historical high of nearly $353 trillion, and investors have begun to diversify their allocations, reducing their reliance on US Treasuries.
Reuters reported that the IIF's quarterly "Global Debt Monitor" indicated that since the beginning of this year, international market demand for Japanese and European government bonds has continued to strengthen, while demand for US Treasuries has remained largely flat.
Emre Tiftik, IIF's Head of Global Markets and Policy, said: "This shows that some international investors are trying to diversify their allocations and reduce their reliance on US Treasuries."
He stated that the $30 trillion US Treasury market currently has "no immediate risk," but in the long run, US government debt is increasingly heading towards an "unsustainable path." In contrast, debt-to-GDP ratios in the Eurozone and Japan are gradually decreasing.
The report pointed out that under current policies, the US debt-to-GDP ratio is expected to continue to rise. At the same time, benefiting from the AI-related bond issuance boom and strong inflows of overseas capital, the US corporate bond market continues to flourish.
The IIF stated that large-scale US borrowing was the main reason for the global debt increase of over $4.4 trillion in the first quarter, which was the fastest growth since mid-2025 and the fifth consecutive quarter of increase.
Tiftik also mentioned that non-financial corporate borrowing in China increased rapidly at the beginning of this year, especially by state-owned enterprises, with a growth rate significantly exceeding that of the Chinese government's own borrowing.
Apart from these two major global economies, overall debt in mature markets slightly decreased; debt in emerging markets excluding China slightly increased to a record $36.8 trillion, mainly driven by government borrowing.
The IIF report shows that the countries with the largest debt increases during this period include Norway, Kuwait, China, Bahrain, and Saudi Arabia, all of which saw their debt-to-GDP ratios increase by more than 30 percentage points.
The IIF predicts that structural pressures such as aging populations, increased defense spending, demand for energy security and supply chain diversification, cybersecurity, and AI-related capital expenditures will further push up government and corporate debt in the medium to long term.
Tiftik also said: "Recent Middle East conflicts are expected to further exacerbate these pressures." (Compiler: Hsu Jui-cheng) 1150507
Reuters reported that the IIF's quarterly "Global Debt Monitor" indicated that since the beginning of this year, international market demand for Japanese and European government bonds has continued to strengthen, while demand for US Treasuries has remained largely flat.
Emre Tiftik, IIF's Head of Global Markets and Policy, said: "This shows that some international investors are trying to diversify their allocations and reduce their reliance on US Treasuries."
He stated that the $30 trillion US Treasury market currently has "no immediate risk," but in the long run, US government debt is increasingly heading towards an "unsustainable path." In contrast, debt-to-GDP ratios in the Eurozone and Japan are gradually decreasing.
The report pointed out that under current policies, the US debt-to-GDP ratio is expected to continue to rise. At the same time, benefiting from the AI-related bond issuance boom and strong inflows of overseas capital, the US corporate bond market continues to flourish.
The IIF stated that large-scale US borrowing was the main reason for the global debt increase of over $4.4 trillion in the first quarter, which was the fastest growth since mid-2025 and the fifth consecutive quarter of increase.
Tiftik also mentioned that non-financial corporate borrowing in China increased rapidly at the beginning of this year, especially by state-owned enterprises, with a growth rate significantly exceeding that of the Chinese government's own borrowing.
Apart from these two major global economies, overall debt in mature markets slightly decreased; debt in emerging markets excluding China slightly increased to a record $36.8 trillion, mainly driven by government borrowing.
The IIF report shows that the countries with the largest debt increases during this period include Norway, Kuwait, China, Bahrain, and Saudi Arabia, all of which saw their debt-to-GDP ratios increase by more than 30 percentage points.
The IIF predicts that structural pressures such as aging populations, increased defense spending, demand for energy security and supply chain diversification, cybersecurity, and AI-related capital expenditures will further push up government and corporate debt in the medium to long term.
Tiftik also said: "Recent Middle East conflicts are expected to further exacerbate these pressures." (Compiler: Hsu Jui-cheng) 1150507