In May, foreign investors' holdings of U.S. Treasury securities rose to $9.37 trillion, the second-highest level on record. Canada led the increase with an addition of $38.7 billion, followed by the United Kingdom with $11.1 billion and China with $8.2 billion. However, Japan, the largest foreign holder, reduced its holdings by $66.8 billion—a move widely attributed by markets to Japan's foreign exchange intervention, which involved selling U.S. Treasuries to raise funds.
Data released by the U.S. Treasury Department on Tuesday showed that foreign investors held $9.37 trillion in U.S. Treasuries in May, an increase of $18.5 billion from April, marking the second-highest level on record. Holdings had risen by $3.9 billion in the previous month.
The data reflect not only net purchases and sales during the month but also valuation changes resulting from fluctuations in bond prices. The U.S. Treasury index rose 0.1% in May, following a slight decline in April.
Japanese authorities previously intervened in the foreign exchange market by selling U.S. dollars and buying yen to support the yen’s exchange rate. Market analysts widely believe such intervention likely involved selling some U.S. Treasury securities to raise U.S. dollar funds.
U.S. Treasury Holdings by Major Countries and Regions
The rebound in foreign holdings of U.S. Treasuries was primarily driven by a significant increase in Canada’s holdings, while Japan reduced its position slightly.
Canada’s holdings increased by $38.7 billion, reaching $435.8 billion, making it the largest buyer among countries that month.
Japan, the largest foreign holder of U.S. Treasuries, saw its holdings decrease by $66.8 billion in May, falling to $1.14 trillion.
The United Kingdom ranked second, with holdings increasing by $11.1 billion in May to reach $948.6 billion. Mainland China ranked third, with holdings rising by $8.2 billion to $659.3 billion.
Other Highlights from the TIC Data
The U.S. Treasury’s TIC data also showed:
In May 2026, net TIC inflows from long-term securities, U.S. short-term securities, and banking flows totaled $132.2 billion. Of this amount: foreign private capital recorded net inflows of $172.0 billion; foreign official capital posted net outflows of $39.9 billion.
In May, foreign investors increased their holdings of U.S. long-term securities, recording net purchases of $262.8 billion. This included net purchases of $246.8 billion by foreign private investors and $16.1 billion by foreign official institutions.
U.S. residents increased their holdings of foreign long-term securities, with net purchases amounting to $30.1 billion.
After incorporating adjustments (such as estimates of foreign investors’ equity investments in U.S. stocks derived from stock swap transactions), total net purchases of U.S. long-term securities by foreign investors in May are estimated at $232.7 billion.
Foreign investors reduced their holdings of U.S. Treasury bills by $43.5 billion in May;
Holdings of all dollar-denominated U.S. short-term securities and other custodial liabilities by foreign investors declined by $30.6 billion;
Bank of America’s net dollar-denominated liabilities to foreign residents decreased by $70 billion.
The U.S. Treasury’s TIC data for June of this year will be released on August 17, 2026.
Editor/Stephen