Foreign holdings of U.S. Treasuries decreased in June, reaching $9.299 trillion from $9.371 trillion in May, although this figure is still up 2.3% compared to a year prior. This decline was primarily driven by foreign official holders, such as central banks and government entities, which collectively sold $70 billion of Treasuries in June, bringing their total holdings down to $3.78 trillion, the lowest since February 2024. In contrast, foreign private-sector entities maintained their Treasury holdings at a record $5.52 trillion.
Japan remained the largest non-U.S. holder of Treasuries, despite reducing its holdings by $26 billion in June to $1.116 trillion. This marks a 2.3% decrease from May and a total reduction of $123 billion since February. The United Kingdom, the second-largest foreign holder, saw its holdings fall by 1% to $939.9 billion from $948.6 billion the previous month. China's holdings experienced a 4% drop to $633.4 billion in June from $659.3 billion in May, marking its lowest level since September 2008 and a decline of over 13% year-on-year.
Several other countries also saw changes in their Treasury holdings. Canada increased its holdings by $24 billion to $460 billion, while India's holdings rose by $5 billion to $186 billion. Conversely, France reduced its holdings by $3 billion to $390 billion, and Norway saw a $4 billion decrease to $203 billion. The United Arab Emirates and Israel also decreased their holdings by $4 billion and $7 billion, respectively.
Despite the reduction in foreign holdings of Treasury securities, the U.S. Department of the Treasury reported a net Treasury International Capital (TIC) inflow of $133.5 billion in June. This was composed of $85.0 billion in net foreign private inflows and $48.4 billion in net foreign official inflows. Foreign residents increased their holdings of long-term U.S. securities by $207.1 billion, with private foreign investors accounting for $169.8 billion and foreign official institutions for $37.3 billion. However, foreign residents decreased their holdings of U.S. Treasury bills by $29.0 billion.
The market value of Treasuries was not a significant factor in the June decline, as long-term Treasury yields ended the month roughly where they began, with the 10-year Treasury yield at 4.45% at both the end of May and June.
