Foreign Holdings of U.S. Treasuries Fall as Japan and China Cut Exposure

Foreign holdings of U.S. Treasuries fell $72 billion to $9.299 trillion in June, led by Japan and China, whose holdings declined 2.3% and 4%, respectively. Yet total U.S. capital inflows rose to $133.5 billion, while equities attracted $181.4 billion. For traders, the data point to shifting demand across U.S. assets rather than broad capital flight, keeping Treasury yields and USD flows in focus.