Foreign portfolio investors are accelerating purchases of American bonds driven by attractive bond yields.

BlockchainRetirementHome · 2026-02-12T15:19:51+00:00

In early 2026, international investors showed significant activity in the US corporate bond market, driven by stable yields and reduced currency hedging costs. Despite a 59% drop in daily net inflows by late January, the month's average purchasing volume remained strong, highlighting continued foreign interest amid macroeconomic uncertainty.

BlockchainRetirementHome

2026-02-12 15:19:51

Abstract generation in progress

In early 2026, international investors demonstrated an unusually high level of activity in the U.S. corporate bond market. According to JPMorgan Chase strategists, this is the most intense period of investment activity in the past three years. The main driving forces behind this trend are stable bond yields and reduced costs for currency risk hedging.

Capital Inflows: From Peak to Correction

JPMorgan’s analysis, prepared by Nathaniel Rosenbaum and Sylvie Mantri, revealed an interesting dynamic. During the final week of January, a noticeable correction occurred: average daily net inflows dropped by 59% to $240 million. However, this decline did not negate the overall positive picture for the month. The average daily volume of corporate bond purchases for January reached $332 million — the highest since February 2023.

What Attracts Capital to U.S. Bonds

The attractiveness of U.S. credit assets, according to Jin10 analysts, is driven by several factors. Primarily, stable bond yields remain competitive in global markets. At the same time, the costs of hedging currency risks have decreased, making U.S. bonds more accessible to foreign portfolio managers.

Risk on the Horizon: The Dollar Dilemma

Wall Street analysts are closely monitoring the dynamics of the U.S. dollar. Theoretically, a weakening national currency could trigger an outflow of foreign capital from American assets. However, this has not happened yet. The resilience of foreign investments in U.S. corporate bonds indicates that the attractive bond yields currently outweigh currency concerns. Foreign investors continue to see U.S. credit assets as an attractive investment tool despite macroeconomic uncertainty.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.