Foreign Holdings of Treasuries Reach Record Even as China Sells

Overseas investors added to their holdings of US Treasuries in July, with the total value climbing to a record high — propelled by gains in the UK and French stockpiles that more than offset a drop in China’s.

Foreign holdings of Treasuries totaled $9.16 trillion for July, up $31.9 billion from June, Treasury Department figures showed Thursday.

Holdings are affected by net sales or purchases, along with shifts in valuation. The Bloomberg US Treasury index , after an advance in the previous month. The transactions data showed both private-sector and official investors were net buyers of notes and bonds in July. Private traders were net sellers of bills, while official buyers were net purchasers.

China ’s stockpile of Treasuries, the third largest, tumbled by $25.7 billion in July, to $730.7 billion — the lowest level since 2009. Belgium, whose holdings include Chinese custodial accounts according to market analysts, saw its stockpile go down by $5.2 billion, to $428.2 billion.

Japan, the biggest foreign holder of Treasuries, saw a $3.8 billion rise in its holdings, to $1.15 trillion. The UK, the second-largest, jumped by $41.3 billion to $899.3 billion — a new record high.

Canada’s Treasuries holdings plunged by $57.1 billion, to $381.4 billion, the lowest since April.

Overseas holdings of Treasuries have been in focus against a backdrop of concern about foreign demand after President Donald Trump slapped tariff increases on imports from the rest of the world. Foreign funds and governments hold over 30% of US Treasuries outstanding.

Some private-sector gauges have suggested diminished appetite for US assets.

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