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A rise in Canadian holdings of U.S. bonds may actually be linked to China, according to Joseph Wang, a macro analyst and blogger at Fed Guy.
Wang suggests that a key question in the market is how China recycles its $1 trillion trade surplus, noting that in the past, China purchased Treasuries through Belgium custodians and that some purchases may now be through Canadian custodians as well.
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Wang previously analyzed turbulent bond market conditions and shifting spreads as the fourth quarter of 2026 began, highlighting factors affecting investors in bond markets. In September 2026, he reviewed the climb in bond yields and growing political pressure impacting debt markets in Markets Weekly. His recent comments on Chinese investment channels add to a series of observations on cross-border bond flows.