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Foreign Demand for US Treasuries Rebounds, Lifts Holdings Above $9 Trillion

Net Treasury purchases of $146 billion in May signaled improved foreign confidence, propelling record holdings in Japan at $1.135 trillion, the UK at $809.4 billion.

A bronze seal for the Department of the Treasury is shown at the U.S. Treasury building in Washington, U.S., January 20, 2023.  REUTERS/Kevin Lamarque/ File Photo
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Overview

  • Foreign holdings of U.S. Treasuries climbed to $9.045 trillion in May, extending their stay above the $9 trillion mark for a third consecutive month.
  • Net purchases of U.S. debt by overseas investors reached $146 billion, the largest monthly inflow since August 2022 after a $40.8 billion outflow in April.
  • China trimmed its Treasury holdings to $756.3 billion, the lowest level since February 2009, as Beijing sells debt to support the yuan amid slower export growth.
  • Japan maintained its position as the top non-U.S. creditor with a record $1.135 trillion stake, while UK investors’ holdings surged to $809.4 billion, overtaking China.
  • Foreign equity inflows rebounded with $114.3 billion invested in U.S. stocks, helping drive total net capital inflow to $311.1 billion, the largest since September 2024.