Foreign Holdings of U.S. Treasuries Fall to $9.248 Trillion

The United States Department of the Treasury reported that foreign holdings of U.S. Treasuries declined for the second consecutive month in July, falling to $9.248 trillion from $9.298 trillion in June.

Reductions from Japan and China drove the decline. Japan, the largest non-U.S. holder, saw its holdings drop for a third straight month to $1.104 trillion. China's holdings fell 2.4% to $618 billion, marking the lowest level since September 2008.

In contrast, the United Kingdom increased its holdings by 6.2% to $998.3 billion, maintaining its position as the second-largest holder. While Treasury holdings dipped, overall net capital inflows for July remained positive at $83.7 billion, though this represented a decrease from the $135.5 billion recorded in June.

U.S. equity inflows experienced the most significant drop, falling from $181.6 billion in June to $3.7 billion in July.