Foreign Holdings of U.S. Treasuries Rise to Highest Level Since 2021, China Holdings Drop to 2009 Low

Foreign holdings of U.S. Treasuries rose to $7.707 trillion in August, the highest level since December 2021. This marks the third straight monthly increase.

Japan remains the largest non-U.S. holder of Treasuries. Their holdings rose for a third straight month to $1.116 trillion in August.

China's holdings fell to their lowest level since May 2009, dropping to $805.4 billion in August. This could be to defend the weakening yuan.

Major U.S. asset classes saw inflows in August after outflows in July. Treasuries had $22.1 billion of inflows after July's $4.4 billion outflow.

Overall, foreign residents increased their holdings of long-term U.S. securities by $61.3 billion in August based on net purchases.