Foreign holdings of US Treasuries rise in May despite China drop
Holdings of U.S. Treasuries rose to $9.045 trillion, up from April's level of $9.013 trillion, and up 11.2% from a year earlier. In March, Treasuries held by foreigners hit a record $9.049 trillion.
On a transaction basis, foreigners bought $146 billion worth of U.S. Treasuries in May, compared with an outflow of $40.8 billion in April as President Donald Trump's back-and-forth tariff policy roiled markets.
Tariffs were announced on April 2, causing a tumble in equities and the dollar and massive volatility in U.S. Treasuries.
Treasury debt buying by foreigners in May was the largest since August 2022.
China, the third largest Treasuries holder, further reduced its holdings to $756.3 billion in May, the lowest since February 2009 when the country's stock of Treasuries dropped to $744.2 billion. Its holdings declined for a fourth straight month and were far below their peak of more than $1.3 trillion between 2012 and 2016.
The world's second largest economy has been selling Treasuries to bolster its currency, the yuan. Analysts said a slowing Chinese economy, post-COVID industrial challenges, and trade barriers have reduced China's dollar inflows from exports.
Japan remained the largest non-U.S. holder of Treasuries, with a record $1.135 trillion in May.
UK investors, the second largest owner of U.S. government debt, raised their pool of Treasuries to an all-time peak of $809.4 billion, up from $807.7 billion in April.
The UK overtook China as the second largest non-U.S. holder of Treasuries in March. The UK is typically viewed as a custody country, which is generally a proxy for hedge fund investments. Other countries used by hedge funds for custody services include the Cayman Islands and the Bahamas.
In May, Canadians increased their Treasuries holdings to $430.1 billion from $368.4 billion. That was a turnaround from April when they were the biggest sellers of U.S. government debt as Trump hit Canada with tariffs on steel, aluminum and automobiles.
Foreign investors also poured back into U.S. equities, with massive inflows of $114.3 billion in May, from an outflow of $18.8 billion in April.
Data also showed the net capital inflow into the United States totaled $311.1 billion in May, compared with an outflow of $14.6 billion in April. The May inflow was the largest since September 2024.
After including adjustments, such as estimated foreign portfolio acquisitions of U.S. stocks through stock swaps, overall net foreign inflows into long-term securities hit a record $259.4 billion in May.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
27 minutes ago
- The Independent
Kai Trump's endorsements have made her a teenage millionaire
Kai Trump, the eldest of President Donald Trump 's grandchildren, is already following in her family's business-forward footsteps with multiple name, image, and likeness (NIL) deals amounting to more than $1 million. Before heading to the University of Miami next fall to begin playing on the school's golf team, Kai, 18, has already scored deals with Accelerator Active Energy, Leaf Trading Cards, and TaylorMade Golf. With more than six million followers on social media, Kai has an NIL valuation of at least $1.2 million, according to On3. That's among the top female student-athlete NIL earners alongside Louisiana State University gymnast Livvy Dunne, who had an NIL valuation of $4.1 million, and basketball player Flau'jae Johnson, who has an NIL valuation of $1.5 million, according to Sports Illustrated. NIL deals enable college athletes to earn money from endorsements, sponsorships, collaborations, and other opportunities based on their personal brand, rather than their athletic performance. Trump reportedly intends to sign an executive order establishing national standards for the National Collegiate Athletic Association's NIL program, according to people familiar with the plan, as CBS News reported earlier this week. Kai, who attended The Benjamin School in Palm Beach, Florida, has leveraged her personal brand to secure such deals. She has approximately 1.8 million followers on Instagram, 3.2 million on TikTok, and 1.17 million on YouTube. Her latest NIL deal is with Accelerator Active Energy, a sugar-free energy drink that has also partnered with Dunne. The eldest Trump grandchild utilizes her social media following to offer fans a behind-the-scenes glimpse into the political landscape in Washington, D.C., and her experiences with golf. While Kai is well-known to fans of Trump, as she is the daughter of the president's eldest son, Donald Trump Jr., her public prominence skyrocketed last year after she delivered a speech at the Republican National Convention. She told Fox News Digital on Wednesday that she 'always wanted' to create content on social media and serve as a role model for younger people. However, her true passion lies in golf, a game popular with her grandfather. Kai told Fox News Digital that she intends to pursue a professional golf career after college. 'If I have two hours, I'm not going to hit a few balls, go on my phone, scroll. No, I'm going to take full advantage of the time I have on the course. So, I mean, I think that's going to get me onto the next level for sure,' Kai told Fox News. One of Kai's NIL deals is with TaylorMade Golf, a leading manufacturer of golf equipment and apparel. Kai also has access to some of the best golf teachers in the world, including her mother Vanessa Trump's new boyfriend, Tiger Woods.
Daily Mail
28 minutes ago
- Daily Mail
Fury as Netflix rival hikes prices by 40%... making it more expensive than other streamers
Love Island fans: your favorite TV show is about to get more expensive. NBCUniversal, the corporate media conglomerate that operates Peacock, said it is raising prices for new subscribers, starting Wednesday, July 23. Peacock users that have an ad-tier subscription will remain locked into their $7.99 a month price if they purchase the account before the change. But in five days, new subscribers will pay $10.99 for the ad-tier, a nearly 40 percent increase. The premium plus plan will now be priced at $16.99 per month. The company will also pilot a 'Select' tier that will maintain a $7.99 monthly price, but limit customers to next-day NBC and Bravo entertainment content, like Housewives and SNL. But the lower-cost tier won't give users access to popular programs like Sunday Night Football, The Traitors, or Love Island. Peacock's decision comes a year after the service raised its prices $2. In July 2024, it bumped monthly subscriptions from at least $5.99 to a starting price of $7.99. Almost every streaming app has increased prices in the past year and change. In January, Netflix raised prices for its ad tier subscription to $7.99. Paramount Plus did the same last June. Max, Hulu, and Disney+ all hiked their prices to $9.99, while Prime Video costs $8.99 a month. But, as of Wednesday, Peacock's ad-running model is the most expensive of the pack. A spokesperson for NBCUniversal didn't immediately respond to request for comment. For years, the streaming companies have paid top dollar for gold-standard content. Shows have blown through hundred-million-dollar budgets: HBO paid a reported $20 million for each episode of House of the Dragon, while Amazon Prime spent over $50 million on each episode of The Lord of the Rings: The Rings of Power. At the same time, services tried to entice subscribers with bargain basement rates. Most apps charged between $5 and $7 a month during the first few years of service. But the bill for the expensive show production seems to be coming due for most customers. On Reddit threads, viewers are growing anxious over the pricing changes. 'Streaming isn't worth it anymore,' one angry customer said in response to Peacock's hike. 'Embrace piracy or digital and physical copies.' It comes after an expert predicted shoppers will soon also see a $20 spike in Amazon Prime memberships. JPMorgan analyst Douglas Anmuth said that Amazon customers may need to pay $159 instead of the usual $139 annually for a Prime membership starting next year. 'A $20 U.S. Prime price increase is seen driving about $3 billion in incremental annualized net sales,' according to a note via TheStreet. The numbers come from Anmuth's estimated value of a Prime subscription, which came out to $1,430 per year. According to the analyst, the new total was a 6 percent jump compared to last year's price tag and more than double the value compared to the 2016 membership cost. The prediction is also based on Amazon's pattern of raising prices on significant features every four years.
Reuters
28 minutes ago
- Reuters
American Express shrugs off competition concerns after profit beat
July 18 (Reuters) - American Express' (AXP.N), opens new tab top brass brushed off concerns about intensifying competition for affluent customers after resilient spending by cardholders helped the company surpass second-quarter profit estimates on Friday. A long history in the premium segment and targeted acquisitions in recent years have given the credit card giant the heft to provide more compelling offerings than its competitors, its executives said. The reassurance comes days after Citigroup (C.N), opens new tab unveiled plans to launch a new premium credit card, Citi Strata Elite, later this quarter to boost its appeal among wealthy customers. "Bring it on," AmEx Chief Financial Officer Christophe Le Caillec said in an interview with Reuters. "We've been in that space for decades and we have built assets that our competitors do not have," he said. Higher competition would encourage more customers to explore premium options. When they do, Le Caillec said he believes they will choose AmEx. The company has long pursued a strategy centered on perks that give its cardholders a sense of exclusivity, rather than simple cashbacks. Analysts say the playbook has helped it build a loyal customer base, one that rivals may struggle to replicate quickly. The acquisitions of Resy and Tock in recent years also set the company apart, Le Caillec said. The platforms offer AmEx cardholders privileged access to 27,000 restaurants worldwide. AmEx will also roll out updates to its Platinum cards later this year for consumers and businesses in the United States, making its "largest investment ever in a card refresh". Excluding one-time items, AmEx earned $4.08 per share for the three months ended June 30, compared with the $3.89 per share analysts were expecting, according to estimates compiled by LSEG. The beat underscores how the credit card giant's focus on wealthy customers has helped insulate it from the effects of waning consumer confidence, which is more pronounced among lower-income households. While not representative of the broader economy, AmEx's numbers offer valuable insight into evolving trends around travel and discretionary spending, especially among the most creditworthy borrowers. Big banks said earlier this week that consumers remain in good financial shape despite high borrowing costs, trade policy uncertainty and a job market where companies are increasingly cautious about hiring. AmEx's total revenue rose 9% to $17.9 billion, also above the $17.7 billion analysts were expecting. Still, the New York-based company boosted its provisions for credit losses to $1.4 billion from $1.3 billion earlier. It also noted softer airline spending amid ongoing economic uncertainty, but said overall volumes would be stable. "We live in uncertain times, but what we're seeing right now is very consistent spending," Chief Executive Officer Stephen Squeri said. AmEx shares fell nearly 3%. As of last close, they had gained 6.3% so far this year, lower than the benchmark S&P 500 index's <.SPX> 7% gain. "We encourage investors to add to the shares given the valuation discount to the market," William Blair analysts said in a note. The company maintained its forecast for 2025, when it expects profit between $15 and $15.50 per share and 8% to 10% revenue growth.
