Foreign Treasury Holdings Surge to Record High Even as China, Japan Sell US Debt

Sales by Beijing and Tokyo are occurring as the yuan and yen face persistent pressure.

Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, Jan. 21, 2016. REUTERS/Jason Lee/Illustration/File Photo

Foreign holdings of U.S. debt climbed to an all-time high in May, even as China and Japan, the world’s two largest holders of Treasurys, bucked the trend and reduced their exposure to government bonds.

New Treasury International Capital System data on July 18 showed that foreign holdings of U.S. Treasurys increased to a record $8.129 trillion, from an upwardly revised $8.04 trillion in April.