BRICS members, European countries, and several Asian nations are raising far fewer US-based financial assets like bonds and Treasuries than at any time before. According to the latest report from Dealogic data, issuance of US dollar-based bonds from foreign countries has dropped by 19% in 2025.
A dip of $86.2 billion worth of US bonds and Treasuries was reported in the first five months of 2025, compared to the same period last year as BRICS, European nations and Asian countries prefer home-based financial assets to get exposure to rising yields.
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BRICS: Foreign Countries Buying US Bonds & Treasuries Drop By 19%
The drop in US bonds and Treasuries is concerning as it’s the first major decline in over three years. In addition, Dealogic data shows that sovereign government bonds from developing countries have seen a surge, especially in local currencies. Investments in local currency-based assets soared to a record high of $326 billion in five months this year. It recorded a five-year high indicating that BRICS members are succeeding in shaking the US bonds and Treasury markets.
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The drop in US dollar-based financial assets comes after other countries are looking at local currency issuance. European nations, Asian countries, and the BRICS alliance are pulling back from US-based bonds and Treasuries. Tariffs and trade wars are partly responsible for the drop as other countries want to reduce America’s grip on the global economy. Even Europe, which is America’s close ally is drifting away from the White House’s policies.
The US is damaging its financial prospects and BRICS is playing along with the policies by ignoring bonds and Treasuries. Local currencies are leveraging the developmental shift and taking its shot which came after decades of struggle. “This development has likely expanded the investor base, prompting more local currency issuance in 2025,” said Johnny Chen, Portfolio Manager at William Blair.