US Treasury records $233 billion net foreign purchase of long‑term securities in May

Foreign investors added a net $233 billion of long‑term U.S. Treasury securities in May, according to the Treasury Department’s International Capital (TIC) data released on July 14. This inflow dwarfs the $96.5 billion net purchase in March and the $50.5 billion in April, pushing total foreign holdings of U.S. Treasuries to about $9.5 trillion, with roughly 84 % held in long‑term notes and bonds.

Private foreign investors were the main driver, increasing their holdings by $77 billion in May despite a $203 billion decline in market value of those securities. Official foreign holders, such as central banks, reduced their positions by $58 billion, bringing their share to $3.85 trillion. The surge in foreign demand helps keep Treasury yields low, which reduces borrowing costs for the U.S. government and eases pressure on the Federal Reserve to raise rates. A portion of the “foreign” ownership includes U.S. hedge funds domiciled in the Cayman Islands and U.S. companies with entities in Ireland, highlighting the complex nature of the ownership base.