Key Takeaways
- Italy is the largest foreign holder of German government debt, with investors holding about $43.5 billion in Bunds in 2024.
- The United States ranks second, with around $31.4 billion in German government bonds held by U.S.-based investors. This reflects the presence of Bunds in global portfolios.
- European Union member states dominate the ranking, accounting for 9 of the top 10 foreign holders of German government debt.
- German government bonds (Bunds) are widely held because they are highly liquid and considered among the safest assets in the euro area.
Use this Visualization: You may use this image for free with proper attribution to GermanPedia (i.e., by linking back to GermanPedia).
Need help communicating complex ideas visually? We help you turn data into your most persuasive story. Contact us to learn more.
Biggest Holders of German Government Debt by Country
| Rank | Country | Holdings (In USD billions) |
|---|---|---|
| 1 | Italy | 43.5 |
| 2 | United States | 31.39 |
| 3 | Belgium | 12.15 |
| 4 | France | 10.23 |
| 5 | Spain | 9.81 |
| 6 | Austria | 9.74 |
| 7 | Finland | 8.23 |
| 8 | Bulgaria | 1.49 |
| 9 | Slovenia | 1.02 |
| 10 | Latvia | 0.25 |
Holdings include all investor types in the reporting economy, such as banks, investment funds, insurers, firms, and households. The securities correspond to instruments issued by Germany’s general government sector. Figures are reported in U.S. dollars and reflect positions at the end of 2024.
Source: IMF Coordinated Portfolio Investment Survey (CPIS)
Nine of the ten biggest foreign holders of German government bonds are European Union member states. Italy ranks as the largest holder of German government bonds, with investors holding about $43.5 billion in Bunds in 2024.
This reflects the high level of financial integration within the euro area. Banks, insurers, pension funds, and investment funds across Europe regularly hold sovereign bonds issued by other euro-area governments as part of their investment portfolios.
Foreign investors make up a significant share of the investor base for German government debt.
German government bonds, often called Bunds, are widely held because they are highly liquid and considered among the safest assets in the euro area. Financial institutions also use them as collateral in financial markets, particularly in repurchase (repo) transactions.
As a result, investors across Europe frequently hold Bunds alongside their domestic government bonds.
Outside Europe, the United States also appears prominently in the ranking, with investors holding about $31.4 billion in Bunds.
This reflects the global reach of the U.S. financial sector. American asset managers, pension funds, insurers, and banks invest in government bond markets around the world.
Since Bunds are highly liquid and widely used as a benchmark for European government debt, they are commonly included in international bond portfolios alongside other major sovereign securities such as U.S. Treasuries.
When interpreting the data, it is important to note that the countries shown in the ranking refer to where the investors holding the bonds are located, not necessarily the nationality of the ultimate investors.
Some countries host large investment fund industries or financial intermediaries. In those cases, German government bonds may be held through funds based there even if the underlying investors are located elsewhere.
Together, these patterns show how German government bonds function both as a regional anchor within the euro area and a widely used safe asset in global portfolios.
More topics
- GDP of European Countries
- European Union’s Debt Has Grown Sharply Over Two Decades
- Europe’s Population Shifted Over 20 Years
- Which European Countries Hold the Most Gold Reserves?
- Top 10 Richest Women in the EU
- Life Expectancy in European Countries
- EU Unicorn Startups: Which Countries Lead and Why
- Women Are Increasing in Managerial Roles Across the EU
- Italy is the Old Man of Europe
- Silver Production in Europe by Country
- Two Decades of Renewable Energy Growth in Europe
- Germans Earn More Than Foreign Workers Across Germany
- EU Military Manpower Changed Since 2020
- Top 20 Largest Employers in Berlin
- Employment in the EU Is Shifting Toward Higher Education
References
- https://data.imf.org/en/Data-Explorer?datasetUrn=IMF.STA:PIP(5.0.0)
- https://www.suerf.org/publications/suerf-policy-notes-and-briefs/the-german-and-italian-government-bond-markets-the-role-of-banks-versus-non-banks/
- https://www.bundesbank.de/resource/blob/895586/679d039d4773416c34b969f841cf3f1d/mL/2022-07-glaeubigerstruktur-data.pdf
