Foreign Holdings of U.S. Treasuries
Foreign holdings of U.S. Treasuries hit a record in May, with Japan's stockpile declining as they appeared to start intervention to support their currency. U.S. Treasuries rose to $8.129 trillion, while Japan's holdings shrank to $1.128 trillion.
Key Points
- U.S. Treasuries rose to $8.129 trillion in May
- Japan's holdings fell to $1.128 trillion
- Investors expected interest rate cuts by the Federal Reserve
- Market focused on Japan's Treasury debt holdings due to intervention to support yen
Pros
- Record foreign holdings of U.S. Treasuries in May
- Investors anticipating Federal Reserve interest rate cuts
- Net foreign acquisitions of long-term securities and banking flows showing positive inflow
Cons
- Decline in Japan's stockpile of U.S. Treasuries
- China's holdings of U.S. Treasuries also decreased