Foreign investors reduced their holdings of US Treasury securities by $50.4 billion in July, bringing total foreign-held Treasuries to $9.25 trillion, the lowest level since October 2025.
France and Canada accounted for the largest reductions, cutting their combined Treasury holdings by roughly $74.8 billion. The scale of the decline from the two countries outweighed the overall drop, indicating that other foreign investors increased their positions during the month.
The United Kingdom moved in the opposite direction, adding approximately $58.4 billion to its Treasury holdings and partially offsetting the selling from France and Canada.
The decline puts foreign demand for US government debt back in focus, particularly as Treasury markets remain sensitive to shifts in international portfolio allocations. The next monthly data will be watched for signs of whether July's reduction represents a broader change in foreign demand or a more concentrated adjustment among individual holders.
