Foreign ownership of US government debt climbed to record levels in June, crossing the $9 trillion mark for the fourth month in a row. According to fresh data from the US Treasury Department, foreign investors held $9.13 trillion in Treasuries in June, up from $9.05 trillion in May.
Compared with the same month last year, foreign holdings rose by almost $1 trillion, a surge of about 10 percent. This means overseas investors continue to play a critical role in funding US government debt by purchasing Treasury bonds. These bonds are often seen as one of the safest investments in the world, attracting governments, banks, and hedge funds across the globe.
Despite this growth in total holdings, the United States experienced some pullback on a transaction basis. In June, there was a net outflow of $5 billion in Treasuries, following a massive inflow of $147 billion in May. That May surge was the largest buying spree since August 2022. A month earlier, in April, the US recorded an outflow of $40.8 billion, showing the ups and downs in foreign investment activity.
China’s Historic Dump of $53 Billion US Treasuries is Unprecedented Blow to US Economy
Japan, United Kingdom, and China Lead the Way
Japan held on to its position as the largest foreign holder of US Treasuries, setting a new record with $1.147 trillion in June. This was an increase of about $12.6 billion from May, keeping Japan far ahead of other countries.
The United Kingdom strengthened its role as the second-biggest holder. British investors boosted their holdings to a record $858.1 billion in June, up from $809.4 billion in May. This move pushed the UK further ahead of China. Analysts note that the UK is often used as a custody hub, meaning much of the money is parked there on behalf of global hedge funds. Other financial centers such as the Cayman Islands and the Bahamas are also known for providing similar services.
China’s Treasury holdings stayed nearly unchanged, standing at $756.4 billion in June, slightly higher than $756.3 billion in May. However, this level remains close to the lowest point since February 2009, when China held $744.2 billion. China’s stockpile of Treasuries is far below its peak of more than $1.3 trillion between 2012 and 2016. In recent years, China has slowly trimmed its holdings, partly to support its currency, the yuan, and deal with domestic economic challenges.
Elsewhere in Asia, Hong Kong and India cut back their holdings. Hong Kong’s Treasury assets fell to $242.6 billion, while India’s declined to $227.4 billion.
Equities See Huge Inflows Despite Treasury Shifts
While some countries reduced their Treasury positions, foreign investors showed renewed appetite for US stocks. In June, overseas investors pumped $163.1 billion into US equities, following strong inflows of $115.8 billion in May. These back-to-back months highlight the continuing appeal of American financial markets despite global uncertainty.
Even with the strong foreign investment in both Treasuries and equities, the net capital inflow into the US slowed sharply in June. The total was just $77.8 billion, down more than 75 percent from the revised $318.1 billion in May. That May figure had been the largest inflow since September 2024, making June’s decline more striking.
The data underlines the complex picture of global money flows. On one hand, foreign holdings of US Treasuries reached an all-time high of $9.13 trillion, supported by record investments from Japan and the UK. On the other, China and some Asian markets continued to trim their treasury positions, while investors also shifted billions into American equities.