Foreign ownership of US Treasuries hits record high

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Niamh RoweMon, Aug 18, 2025, 2:50 PM 2 min readForeign ownership of U.S. Treasuries hit $9.13 trillion in June, according to new data from the Treasury Department.Overseas holdings of Treasury-issued bills, bonds, and notes increased by $80.2 billion from the month prior and were up by almost 10% year-over-year. Ownership surpassed $9 trillion for the fourth consecutive month, having topped an all-time high each time.For the first half of the year, foreign holdings increased by $508.1 billion. During that period, the U.S. dollar tumbled by almost 11%, making it the worst first-half of a year since 1973, when President Nixon delinked the dollar from gold. A weakening dollar, alongside wider concerns that the Trump administration's tariffs could prove to be inflationary, may keep U.S. interest rates higher for longer. This means higher Treasury yields for investors.Japan defended its status at the largest foreign holder of Treasuries in June, with a balance of around $1.15 trillion.The UK bought $48.7 billion of Treasuries in June — the largest purchase of any country — maintaining its rank as the second-largest holder. The UK is considered to be a custody country, meaning it's used by hedge funds for custody services, similar to the Cayman Islands and the Bahamas.The UK's Treasury holdings have approximately doubled over the past five years due to the growing popularity of the basis trade among hedge funds. The gross holding of U.S. government bonds by hedge funds reached approximately $3.94 trillion in March, more than doubling since 2018, according to the Office of Financial Research.Traders exploit tiny price differences between U.S. Treasury bonds and Treasury futures. They buy the actual bonds, and sell Treasury futures at the same time. Higher rates can widen the gap between cash Treasuries and futures, making the trade more attractive — but only if the borrowing costs don’t outweigh the arbitrage gain.Hedge funds' growing Treasury leverage has some regulators fearing it could amplify economic shocks if traders all rush to unwind their basis trades at once. When President Donald Trump revealed sweeping tariffs in April, Treasury yields spiked, indicating a bond market sell-off, as uncertainty grew about the stability of the U.S. economy."As U.S. Treasury yields started to rise, hedge fund deleveraging likely amplified the move," JP Morgan analysts wrote .China's Treasury holdings were little changed in June, ending three months of net outflows, which saw investors shed $28 billion, equivalent to about 4% of its holdings. While China remains the third-largest foreign owner, its balance is the lowest its been since February 2009.China began reducing its exposure to Treasuries in 2018, downsizing its reserves by about one-third, equivalent to $414 billion. Beijing's sell-off is an attempt to boost its currency, the yuan, experts say, as an economic slowdown and trade barriers have diminished China's inflows from exports.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,411.37 -37.78 (-0.59%)Dow 3044,922.27 +10.45 (+0.02%)Nasdaq21,314.95 -314.82 (-1.46%)Russell 20002,276.61 -17.86 (-0.78%)VIX15.57 +0.58 (+3.87%)Gold3,358.90 +0.20 (+0.01%)PortfolioSign in to access your portfolioSign inTop gainersWW WW International, Inc. 34.00 +3.23 (+10.50%)PINC Premier, Inc. 26.21 +1.78 (+7.29%)INTC Intel Corporation 25.31 +1.65 (+6.97%)NWE NorthWestern Energy Group, Inc. 58.41 +3.48 (+6.34%)LXP LXP Industrial Trust 8.65 +0.51 (+6.27%)Top losersVKTX Viking Therapeutics, Inc. 24.36 -17.73 (-42.12%)NEGG Newegg Commerce, Inc. 89.40 -17.72 (-16.54%)FN Fabrinet 285.23 -41.89 (-12.81%)CRDO Credo Technology Group Holding Ltd 106.30 -12.44 (-10.48%)LNZA LanzaTech Global, Inc. 19.72 -2.29 (-10.40%)Most activeOPEN Opendoor Technologies Inc. 3.6200 -0.1600 (-4.23%)INTC Intel Corporation 25.31 +1.65 (+6.97%)NVDA NVIDIA Corporation 175.64 -6.37 (-3.50%)PLTR Palantir Technologies Inc. 157.75 -16.28 (-9.35%)WULF TeraWulf Inc. 8.78 -0.60 (-6.40%)Earnings eventsTrending tickersPLTR Palantir Technologies Inc. 157.75 -16.28 (-9.35%)AMD Advanced Micro Devices, Inc. 166.55 -9.59 (-5.44%)ORCL Oracle Corporation 234.62 -14.45 (-5.80%)VKTX Viking Therapeutics, Inc. 24.36 -17.73 (-42.12%)NVDA NVIDIA Corporation 175.64 -6.37 (-3.50%)Top economic events