Foreign holdings of US Treasuries top $8.5T for first ever time

Foreign holdings of US Treasuries soared to a record high in August, rising for four straight months driven by increased purchases from several countries, led by The Cayman Islands and France.

Data from the Treasury Department released on Oct. 17 showed that foreign holdings of US Treasuries rose by $164.9 billion, surpassing $8.5 trillion in August, marking the highest level since 2000.

Japanese investors ended a four-month reduction of their US Treasuries holdings, maintaining Japan's position as the largest non-US holder of Treasuries. Japan boosted its holdings by about $13.5 billion to $1.13 trillion.

Data further showed that China – excluding Hong Kong – cut its holdings of US Treasuries by $1.9 billion to $774.6 billion during the month, but the world's second-largest economy remains the second largest holder of the US Treasuries.

The United Kingdom remained in the third place, supported by an increase in its holdings of US Treasuries by about $15.6 billion to $743.9 billion, a record high.

Several countries increased their holdings to record levels, with The Cayman Islands adding $41.4 billion to reach $419.5 billion. France also increased its holdings by about $21.3 billion to $312.2 billion.