US Banks & UST Holdings: Tariff Turmoil Risk
- the largest US banks increased their holdings of US Treasuries in the first quarter of the year, reaching a total of $1.77 trillion by March 31.
- According to an analysis of 53 banks, Treasury holdings classified as available-for-sale (AFS) and held-for-trading (HFT) rose by 1% during the quarter. The increase was largely driven by...
- Market observers will be watching closely to see how banks manage their Treasury holdings considering ongoing market volatility and potential interest rate changes.
US banks ramped up their US Treasury holdings to $1.77 trillion by the close of Q1, heightening potential balance sheet risks, according to a new analysis. This surge, driven primarily by a 1% rise in available-for-sale and held-for-trading Treasury holdings, occurred just before a sensitive tariff declaration, exposing financial institutions to market fluctuations. This strategic move by major players, detailed in this pivotal report, prompts crucial questions about the long-term implications of increased government debt exposure. With economic uncertainty looming, including interest rate changes, News Directory 3 brings you this in-depth exploration of the treasury landscape. Discover what’s next for these banks amid an unpredictable economic climate…
US Banks increase Treasury Holdings, Exposing Balance Sheet pain
Updated may 28, 2025
the largest US banks increased their holdings of US Treasuries in the first quarter of the year, reaching a total of $1.77 trillion by March 31. This increase, just before a tariff declaration by then-President Donald Trump triggered a government bond selloff, leaves these institutions vulnerable to potential balance sheet risks.
According to an analysis of 53 banks, Treasury holdings classified as available-for-sale (AFS) and held-for-trading (HFT) rose by 1% during the quarter. The increase was largely driven by a $21.4 billion jump in AFS holdings.
What’s next
Market observers will be watching closely to see how banks manage their Treasury holdings considering ongoing market volatility and potential interest rate changes. The impact on bank earnings and overall financial stability remains a key concern.