Foreign holdings of US Treasuries rise from almost 1-year low

[NEW YORK] Foreign holdings of US Treasuries rose in August from the lowest level since October 2025, led by increases in the stockpiles of Canada and Belgium.

Overseas holdings climbed more than US$83 billion from July, according to data published by the Treasury Department on Friday (Oct 16). The total now stands at US$9.33 trillion. 

The foreign holdings data incorporate changes in valuation as well as net sales and purchases. The Bloomberg US Treasury index advanced 0.3 per cent in August, before a tumble in September on concerns about persistent inflation and a new cycle of Federal Reserve interest-rate hikes.

Japan, the biggest foreign holder of Treasuries, saw a US$36 billion drop in its holdings, to US$1.1 trillion, the lowest since December 2024.

Japanese officials were intervening over the summer in the foreign-exchange market, buying yen amid a slump in the currency to its weakest in four decades against the dollar. Japanese data last month suggested Tokyo sold a portion of its holdings of Treasuries and other securities.

Mainland China, the third-largest holder of Treasuries, saw a US$27 billion fall in August, Friday’s report showed. The total is now at an 18-year low of US$591 billion. Some analysts have said that Beijing might have channelled some of its transactions in US securities via other nations, including Canada. 

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Canada’s holding increased by US$38 billion to almost US$465 billion, while Belgium’s added nearly US$20 billion to about US$491 billion. 

The UK, the second-biggest holder of Treasuries, saw an US$11 billion increase in August, to surpass US$1 trillion for the first time. BLOOMBERG