Foreign Holdings of US Treasuries Rise From Almost One-Year Low

Foreign holdings of US Treasuries rose in August from the lowest level since October 2025, led by increases in the stockpiles of Canada and Belgium.

Overseas holdings climbed more than $83 billion from July, according to data published by the Treasury Department on Friday. The total now stands at $9.33 trillion. 

The foreign holdings data incorporate changes in valuation as well as net sales and purchases. The Bloomberg US Treasury index advanced 0.3% in August, before a tumble in September on concerns about persistent inflation and a new cycle of Federal Reserve interest-rate hikes.

Japan, the biggest foreign holder of Treasuries, saw a $36 billion drop in its holdings, to $1.1 trillion, the lowest since December 2024. Japanese officials were intervening over the summer in the foreign-exchange market, buying yen amid a slump in the currency to its weakest in four decades against the dollar. Japanese data last month suggested Tokyo sold a portion of its holdings of Treasuries and other securities.

Mainland China, the third-largest holder of Treasuries, saw a $27 billion fall in August, Friday’s report showed. The total is now at an 18-year low of $591 billion. Some analysts have said that Beijing might have channeled some of its transactions in US securities via other nations, including Canada. 

Canada’s holding increased by $38 billion to almost $465 billion, while Belgium’s added nearly $20 billion to about $491 billion. 

The UK, the second-biggest holder of Treasuries, saw an $11 billion increase in August, to surpass $1 trillion for the first time.

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