Foreign holdings of United States Treasuries increased in May, led by the sometimes-volatile Canadian stockpile, with Japan having drawn down some of its balance. Overseas holdings rose US$18.5 billion in May from the month before, U.S. Treasury data showed Tuesday. That brought the total to US$9.37 trillion, the second-largest on record. The figures incorporate both net sales and purchases and changes in valuation. A Bloomberg index of U.S. Treasuries ticked up 0.1 per cent in May after a slight retreat the previous month. Japan, which has the largest foreign holdings of Treasuries, saw a US$66.8 billion decrease in its stockpile, to US$1.14 trillion. Japanese authorities earlier this year were intervening in the foreign exchange market to sell dollars and buy yen, in transactions analysts viewed as likely to involve some measure of selling of Treasuries. U.S. dollar is best bet in new global regime of high rates, BMO saysSaudis eye Canadian assets as investment fund accepts Carney’s invite to Toronto Canadian holdings jumped by US$38.7 billion in May, to US$435.8 billion. The United Kingdom , which has the second-largest stockpile of Treasuries, saw its holdings climb US$11.1 billion, to US$948.6 billion. China , the No. Three holder, saw an increase of US$8.2 billion, to US$659.3 billion. Belgium , whose holdings include Chinese custodial accounts according to market analysts, also gained on the month. Bloomberg.com
Foreign holdings of U.S. Treasuries rose in May, led by Canada
