Japan’s holdings of US 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 late 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 2014, after $53.4 billion in buying in May, the report showed. Foreigners sold US equities, pared purchases of corporate debt and increased buying of US 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.
Meanwhile, foreign inflows to US Treasuries climbed in June to their highest level in 16 months, data from the US Treasury Department showed, as worries about Greece and Chinese equities prompted a flight to safe havens.
Offshore purchases of US Treasuries totaled $69.8 billion in June, the largest since February 2014, when inflows hit $90.5 billion.
Foreign investors bought US government debt for a fourth consecutive month in June. Benchmark US Treasuries, however, ended the month with a yield of 2.33%, higher than the 2.12% at the beginning of the month.
