Foreign holdings of U.S. Treasury securities saw a notable increase in May, reaching a new record high.
In May, foreign investors increased their holdings of U.S. Treasury securities by $106.3 billion, bringing the total to $8.37 trillion. This marks a significant rise from the previous month and continues a trend of increasing foreign investment in U.S. debt.
Among major holders, China’s holdings saw a slight increase of $2.2 billion in May, reaching $778.1 billion. However, year-over-year, China’s holdings have decreased by $114.1 billion. Since its peak in 2019, China’s holdings have fallen by 27%, or $283 billion.
Japan, the largest foreign holder of U.S. Treasuries, increased its holdings by $22.1 billion in May to $1.15 trillion. This represents a year-over-year increase of $104.1 billion, reversing a prior decline.
India’s holdings of U.S. Treasury securities also saw an increase in May, rising by $10.6 billion to $253.1 billion. This is a substantial year-over-year increase of $57.1 billion, more than doubling its holdings from May 2024.
Brazil’s holdings remained relatively stable in May at $212 billion,showing a slight decrease of $11 billion year-over-year. Since reaching its peak in 2018, Brazil’s holdings have declined by approximately one-third.
