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Foreign holdings of US Treasuries fall in June, led by Japan, UK, China

Created at 17 Aug · 9:08 PM1 source↑ Market-relevant
IN SHORT

Foreign holdings of U.S. Treasuries decreased to $9.299 trillion in June, a decline from the previous month, with Japan, the UK, and China showing the largest drops. Despite the monthly decrease, foreign ownership is up 2.3% year-over-year.

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Key Numbers

$9.299 trilliontotal foreign holdings of US Treasuries in June
$1.116 trillionJapan's holdings of US Treasuries in June
$939.9 billionUK holdings of US Treasuries in June
$633.4 billionChina's holdings of US Treasuries in June
618.2 billionChina's holdings of US Treasuries in September 2008
13%year-on-year decline in China's holdings
$6.8 billionTreasury inflows in June
$133.5 billionoverall net capital inflows in June

Who's Involved

Treasury Department
released data on foreign holdings of U.S. Treasuries
Japan
largest non-U.S. holder of Treasuries, saw holdings fall
United Kingdom
second-largest foreign holder, showed a decline in holdings
China
third-largest holder, saw holdings drop to lowest since 2008

↳ Why This Matters

The decline in foreign holdings of U.S. Treasuries, particularly from major holders like Japan, the UK, and China, could signal shifts in global investor sentiment and potentially impact U.S. borrowing costs and currency strength.

Key facts

  • Foreign holdings of U.S. Treasuries fell to $9.299 trillion in June.
  • Japan, the UK, and China led the decline in foreign Treasury holdings.
  • Japan's holdings decreased by 2.3% to $1.116 trillion.
  • China's holdings fell to $633.4 billion, their lowest level since September 2008.
  • Overall net capital inflows for June were $133.5 billion.

Foreign holdings of U.S. Treasuries declined in June, according to data released by the Treasury Department. Total holdings slipped to $9.299 trillion from $9.371 trillion in May, though they remain up 2.3% compared to a year earlier. Japan, the largest foreign holder, saw its holdings fall by 2.3% to $1.116 trillion. The United Kingdom, the second-largest holder, experienced a 1% decrease, bringing its holdings to $939.9 billion. China, the third-largest holder, reported a 4% drop in its Treasury holdings to $633.4 billion, marking the lowest level since September 2008. China's holdings were also down more than 13% on a year-over-year basis. Treasury inflows in June were $6.8 billion, a significant decrease from $56.6 billion in May. U.S. corporate bonds saw inflows of $35.6 billion, and U.S. equities attracted $181.4 billion. Overall net capital inflows for June totaled $133.5 billion.

Frequently asked questions

Total foreign holdings of U.S. Treasuries slid to $9.299 trillion in June.

Japan, the United Kingdom, and China saw the largest declines in their holdings of U.S. Treasuries in June.

China's June holdings of $633.4 billion were the lowest since September 2008.

There were Treasury inflows of $6.8 billion in June, a decrease from $56.6 billion in May.

What Happens Next

01Monitor July data for continued trends in foreign Treasury holdings.
02Observe market reactions to shifts in major holders' positions.

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Cadence
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    14 Aug · 8:47 PM

How It Developed

Foreign holdings of U.S. Treasuries fell to $9.299 trillion in June.
Japan's holdings decreased by 2.3% to $1.116 trillion.
The UK's holdings declined 1% to $939.9 billion.
China's holdings dropped 4% to $633.4 billion, the lowest since September 2008.
China's June holdings were down more than 13% year-on-year.
Treasury inflows were $6.8 billion in June, down from $56.6 billion in May.
Overall net capital inflows for June were $133.5 billion.

Sources

T1
Foreign holdings of US Treasuries fall in June, led by Japan, UK, China, data showsReuters

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