Foreign investors increased their holdings of US Treasury securities to a record $9.13 trillion in June 2025, according to new data from the US Treasury Department. This marks an increase of $80.2 billion from May and a surge of $508.1 billion in the first half of 2025, despite the US dollar falling by 11% — the steepest decline since 1973.
Japan Remains the Largest Holder
Japan continues to be the biggest foreign holder of US Treasuries. In June, Japan added $12.6 billion, bringing its total holdings to $1.15 trillion. This underlines Japan’s strong confidence in US government debt as a safe investment, even with currency fluctuations.
United Kingdom Sees Big Jump
The United Kingdom recorded one of the sharpest rises in June. British holdings rose by $48.7 billion to $858.1 billion, making the UK the second-largest holder after Japan. This increase highlights the UK’s growing reliance on US securities to manage reserves and investment strategies.
Other Key Movements
- China: Holdings remained steady at $756.4 billion, keeping China as the third-largest holder.
- Belgium: Saw a notable rise of $17.9 billion, reaching $433.4 billion.
- India: Recorded a decline of $7.9 billion, falling to $227.4 billion amid ongoing trade tensions with the US.
- Other Countries: Cayman Islands ($442.7B), Canada ($438.5B), Luxembourg ($404.7B), and Switzerland ($300.9B) also remain significant investors.
Foreign Share in US Debt
Foreign entities now hold more than 30% of all outstanding US Treasuries. This shows how global economies rely on US government debt as a secure and liquid investment option.
Why This Matters
The steady rise in foreign investment in US Treasuries highlights global trust in America’s financial system, even during periods of a weaker dollar. These inflows help the US government finance its deficit at stable borrowing costs, while giving foreign governments and investors a safe place to park reserves.
Conclusion
With foreign holdings reaching a record high in June 2025, US Treasuries continue to be the world’s preferred safe asset. Japan and the UK led the growth, while India reduced its exposure. Going forward, foreign demand will remain crucial for US financial stability in a global environment shaped by trade tensions, interest rate changes, and currency movements.
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