Foreign holdings of US Treasuries fell $50B in July to $9.25T, marking the lowest since October 2025, with Japan and China both trimming positions.
Macro & Markets ·
Foreign holdings of U.S. Treasuries declined by $50 billion in July, reaching $9.25 trillion—the lowest level since October 2025. The decrease reflects both net sales and shifts in bond valuations across foreign central banks and institutional investors.
This marks the fourth monthly contraction over five months, with cumulative outflows totaling $239 billion. Japan, holding the largest foreign position, reduced its stake by $13 billion to $1.11 trillion, the lowest since January 2025. China, the third-largest holder, trimmed its position by $15 billion to $618 billion, falling to its lowest point since August 2008.
The pattern suggests sustained pressure on foreign demand for U.S. debt instruments, though the underlying drivers—whether portfolio rebalancing, yield considerations, or geopolitical factors—remain incompletely characterized in available reporting.