NEW YORK (Reuters) – Foreign holdings of U.S. Treasuries surged to a record high in August, data from the Treasury Department showed on Thursday, rising for four straight months.
Holdings of U.S. Treasuries by foreigners rose to $8.503 trillion in August, up from $8.338 trillion in the previous month. They were up 11.5% from holdings a year earlier.
The benchmark 10-year Treasury yield started August at 3.978% and ended the month at 3.844%, falling 13.4 basis points. U.S. Treasury yields had been declining in August as Federal Reserve officials flagged the onset of the easing cycle with inflation on its way to its 2% target.
The Fed eventually cut rates by a hefty 50 bps on Sept. 18.
Data further showed that Japan remained the largest non-U.S. holder of Treasuries, with holdings of $1.129 trillion, the largest since March. Its holdings have increased for three consecutive months.
China’s pile of Treasuries, meanwhile, fell for a second…
