Foreign investors boost US Treasury holdings after year-low dip

Data released by the Treasury Department on October 16 showed that foreign investors increased their US Treasury holdings by more than $83 billion in August, bringing the total to $9.33 trillion, the highest level since the previous year’s low. The rise was led by Canada, which added $38 billion to reach nearly $465 billion, and Belgium, which contributed almost $20 billion for a total of about $491 billion. In contrast, Japan’s portfolio shrank by $36 billion to $1.1 trillion, its lowest point since December 2024, as the country intervened in the foreign-exchange market.

Mainland China’s holdings fell $27 billion to $591 billion, an 18-year trough, possibly reflecting indirect purchases through other nations. The Bloomberg US Treasury index advanced 0.3 percent in August but fell in September amid concerns over persistent inflation and a new round of Federal Reserve rate hikes.