Foreign Holdings of US Treasuries Fall to Lowest Since October 2025

Foreign Treasury holdings fell $50 billion in July to $9.25 trillion, marking the fourth decline in five months totaling $239 billion. Japan trimmed $13 billion to $1.11 trillion; China cut $15 billion to $618 billion, lowest since August 2008. Weakening foreign demand pressures USD as the Fed faces rate repricing amid elevated PCE inflation, forcing traders to recalibrate which central banks follow.