Foreign holdings of U.S. Treasuries surpassed $9 trillion for a third consecutive month in May, increasing to $9.045 trillion. Buyers, excluding China, returned after April’s outflows due to tariff uncertainty. Foreigners purchased $146 billion worth of Treasuries, marking the largest amount since August 2022.

China, the third largest holder of Treasuries, decreased holdings to $756.3 billion in May, the lowest since February 2009. China is selling Treasuries to support the yuan amidst economic challenges. Japan remained the top non-U.S. holder with a record $1.135 trillion.

UK investors, the second largest owners of U.S. Treasuries, raised holdings to a record $809.4 billion in May. The UK surpassed China as the second largest non-U.S. holder in March. Canadians increased their Treasuries holdings in May, rebounding from April’s selling after tariffs.

Foreign investors re-entered U.S. equities with $114.3 billion inflows in May, following April’s outflow. Capital inflow into the U.S. totaled $311.1 billion in May, the highest since September 2024. This surge reflects renewed interest in U.S. assets after the previous month’s uncertainty.

Read more at Yahoo Finance: Foreign holdings of US Treasuries rise in May despite China drop