Foreign holdings of U.S. Treasuries increased in May to top $9 trillion for a third straight month, data from the Treasury Department showed on Thursday, with buyers, other than China, flocking back in after tariff turmoil led to outflows in April.
Holdings of U.S. Treasuries rose to $9.045 trillion, up from April’s level of $9.013 trillion, and up 11.2% from a year earlier. In March, Treasuries held by foreigners hit a record $9.049 trillion.
On a transaction basis, foreigners bought $146 billion worth of U.S. Treasuries in May, compared with an outflow of $40.8 billion in April as President Donald Trump’s back-and-forth tariff policy roiled markets.
Tariffs were announced on April 2, causing a tumble in equities and the dollar and massive volatility in U.S. Treasuries.
Treasury debt buying by foreigners in May was the largest since August 2022.
China, the third largest Treasuries holder, further reduced its holdings to $756.3 billion…
