NEW YORK, Aug 17 (Reuters – Foreign holdings of U.S. Treasuries slid in June, data from the Treasury Department showed on Monday, led by declines in holdings from Japan, the UK and China.
Holdings of U.S. Treasuries slipped to $9.299 trillion in June from $9.371 trillion in the previous month. But compared with a year earlier, Treasuries owned by foreigners were up 2.3%.
Here are some details:
* Japan holdings fell to $1.116 trillion in June, down 2.3%, from May’s level of $1.143 trillion. It remained the biggest non-U.S. holder of U.S. Treasuries, with holdings hitting a peak of $1.325 trillion in November 2021.
* The United Kingdom, the second-largest foreign holder of Treasuries, showed a 1% decline in holdings to $939.9 billion in June from $948.6 billion the previous month. The UK is widely viewed as a major custody hub for global investors and its flows are often seen as a proxy for hedge fund positioning.
* China’s stash of Treasuries dropped 4% to $633.4 billion in June from $659.3 billion in May. China’s holdings in June were the lowest since September 2008, when holdings tumbled to $618.2 billion.
* China is still the third-largest non-U.S. holder of Treasuries. Its June holdings have declined by more than 13% on a year-on-year basis.
* On a transaction basis, June saw Treasury inflows of $6.8 billion, down from $56.6 billion in May.
* U.S. corporate bonds posted inflows of $35.6 billion in June, down from $52.5 billion the previous month.
* U.S. equities also tracked inflows of $181.4 billion in June, up from $134.6 billion in February.
* Overall net capital inflows for June were $133.5 billion, compared with $131.5 billion in May.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by David Gregorio)
