US Treasury Department TIC data show June reductions in UST holdings by Japan,
China and the UK of about $26.0bn, $26.0bn and $9.0bn respectively. China’s
holdings fell to $633.4bn, the lowest since Sep 2008. Net foreign purchases of
medium- and long-term Treasuries plunged to $6.8bn in June from $56.6bn in May.
However, foreigners still net-bought $181.4bn of US equities and $35.6bn of
corporate bonds in June, leaving aggregate TIC net inflows of $133.5bn —
consistent with reallocation into equities and credit rather than a wholesale
flight from US assets. Country-level holdings are reported on a
market-value/custody basis; data from financial centres such as the UK can
include third-country assets, so monthly declines do not necessarily indicate
active selling.
