Data from the U.S. Treasury shows that in June, holdings of U.S. Treasury bonds by Japan, China, and the UK decreased by approximately $26 billion, $26 billion, and $9 billion respectively, with China's holdings falling to $633.4 billion, the lowest since September 2008.
Net purchases of medium- and long-term U.S. Treasury bonds by foreign investors also decreased from $56.6 billion in May to $6.8 billion, indicating a significant cooling in demand.
However, this does not equate to a complete withdrawal of overseas funds from the U.S. In June, foreign investors still made net purchases of $181.4 billion in U.S. stocks and $35.6 billion in corporate bonds, resulting in a total net inflow of TIC (Treasury Income) of $133.5 billion, indicating a shift from U.S. Treasuries to equities and credit assets. At the same time, country-specific holdings are based on market capitalization and custody metrics, and data from financial centers such as the UK may include funds from third countries; therefore, a monthly decrease cannot be entirely equated with active selling.
