On August 15, local time, data released by the US Treasury Department showed that the holdings of the top three overseas creditors of US Treasuries in June were differentiated: Japan, the United Kingdom increased their holdings, and China reduced their holdings.

The U.S. Treasury's June International Capital Flow Report (TIC) showed that Japan increased its holdings of U.S. Treasuries by $8.8 billion in June to $1,105.6 billion, making it the largest U.S. creditor. That followed a $30.4bn reduction in Treasury holdings in May, the first reduction since February.

    China reduced its holdings of Treasuries by $11.3 billion to $835.4 billion in June, the third straight month of cuts and the previous low of $801.5 billion set in May 2009. As the second largest foreign creditor of US Treasuries, China's holdings of US Treasuries have been below $1tn since April last year, and reduced its holdings for seven consecutive months from August last year to February this year, increasing its holdings by $20.3bn in March this year, then reducing its holdings by $400m in April and $22.2bn in May.

    The U.K. increased its holdings by $11.9 billion to $672.3 billion, making it the third-largest holding.

    Meanwhile, the Treasury report showed net inflows from all overseas flows to long - and short-term US securities and banking flows totalled $147.8bn in June, reversing a net outflow of $167.6bn in May. Among them, the net overseas private inflow was $119.8 billion and the net overseas official inflow was $28 billion.

    Meanwhile, net overseas inflows into US long-term securities were $244bn in June, up from $59.7bn in May. Among them, overseas private investors bought net $183.9 billion of securities, and overseas official institutions bought net $60.2 billion. After some adjustments, including purchases of U.S. stocks through stock swaps for overseas portfolios, overseas net purchases of U.S. long-term securities totaled $195.9 billion in June, up from $17.5 billion in May.