Foreign US Treasury holdings rise in August, but China cuts to 2008 low
TLT•Foreign holdings of US Treasuries rose to $9.331 trillion in August from $9.248 trillion in July, while China’s holdings fell to $590.7 billion, their lowest since August 2008. Overall net capital inflows increased to $199.8 billion from $87.4 billion.
1. Treasury holdings rise
Foreign holdings of US Treasuries increased in August after two months of declines, reaching $9.331 trillion from $9.248 trillion in July. Holdings were up less than 1% from a year earlier and remained below the February record of $9.487 trillion.
2. China falls, UK tops $1 trillion
China’s holdings dropped 2.4% to $590.7 billion, the lowest since August 2008, and were down nearly 16% from a year earlier. Japan’s holdings fell 3.2% to $1.068 trillion, while UK holdings rose 1.1% to $1.009 trillion, topping $1 trillion for the first time. Canada’s holdings increased 4.2% to $490.5 billion.
3. Capital inflows increase
On a transaction basis, Treasury inflows reached $108.9 billion in August, compared with an outflow of $3.6 billion in July. US corporate bonds had inflows of $41.6 billion, and US equities had inflows of $153.9 billion. Overall net capital inflows rose to $199.8 billion from $87.4 billion.
