WASHINGTON ¨C Japan¡¯s holdings of U.S. Treasuries dipped below $1.2 trillion for the first time since 2013 even as purchases of the government debt accelerated among foreigners as a whole.
Japan, the second-largest foreign holder, saw its holdings fall by $17.8 billion in June, the biggest drop in two years, to $1.197 trillion, according to Treasury Department data released Monday in Washington. China¡¯s holdings of Treasuries rose by about $900 million to $1.27 trillion.
Net foreign purchases of Treasuries were $69.8 billion in June, the most since February last year, after $53.4 billion in buying in May, the report showed. Foreigners sold U.S. equities, pared purchases of corporate debt and increased buying of U.S. agency bonds.
The Treasury¡¯s report, which also contains data on international capital flows, showed net foreign purchases of long-term securities of $103.1 billion in June.
It showed a total cross-border outflow, including short-term securities such as Treasury bills and stock swaps, of $110.3 billion.
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