Foreign ownership of U.S. Treasuries reached record levels in June, surpassing $9 trillion for the fourth consecutive month, according to data released by the Treasury Department on Friday.

In June, foreign holdings climbed to $9.13 trillion, up from $9.05 trillion in May. Compared with a year ago, these holdings increased by nearly $1 trillion, marking a 10 percent rise.

Despite the overall increase, the U.S. saw a net outflow of $5 billion in June, following purchases of around $147 billion in May—the largest monthly acquisition since August 2022. In April, there was a net outflow of $40.8 billion amid market disruptions caused by President Donald Trump’s shifting tariff policies.

Japan remained the largest foreign holder of Treasuries, with a record $1.147 trillion in June, an increase of $12.6 billion from May’s $1.134 trillion.

UK investors, the second-largest non-U.S. holders, also raised their Treasury holdings to a new record of $858.1 billion, up 0.6 percent from $809.4 billion in May. The UK surpassed China as the second-largest non-U.S. Treasury holder in March and is often considered a custody hub for hedge fund investments, alongside locations such as the Cayman Islands and the Bahamas.

China, the third-largest holder, saw little change, with its Treasury holdings at $756.4 billion in June, compared with $756.3 billion in May. This is the lowest level since February 2009, when holdings fell to $744.2 billion. China’s holdings remain well below the peak of more than $1.3 trillion recorded between 2012 and 2016. Analysts attribute China’s gradual reduction in Treasuries to efforts to support the yuan, as well as economic slowdown, post-COVID challenges, and trade barriers limiting export inflows.

Other Asian investors also reduced their Treasury positions, with Hong Kong holding $242.6 billion and India $227.4 billion.

Meanwhile, foreign investors returned to U.S. equities, injecting $163.1 billion in June, following $115.8 billion in May. Overall, net capital inflows into the U.S. totaled $77.8 billion in June, a sharp drop of 75 percent from the revised $318.1 billion in May, which had been the largest since September 2024.