IndiaFocal.

India, in focus.

World

US Saw $133.5 Billion Net Capital Inflow in June, Treasury Data Shows

Net capital inflows into the US reached $133.5 billion in June, driven by private investment and strong equity purchases.

Foreign investors poured a net $133.5 billion into US assets in June, according to the latest Treasury International Capital (TIC) data. This marks a slight increase from the $131.5 billion recorded in May and a significant jump from April's $77.2 billion.

The June figure was driven primarily by private sector activity, which accounted for $85 billion of the net inflow. Official flows added $48.4 billion, a sharp reversal from the $39.9 billion net outflow seen in the previous month.

Net foreign purchases of long-term securities totaled $172.7 billion in June, down from $231.2 billion in May. Within this category, foreign investors showed a strong appetite for US equities, buying a net $181.4 billion worth—up from $134.6 billion the month before. Purchases of corporate bonds also remained positive at $35.6 billion.

However, demand for US Treasuries cooled considerably. Net foreign buying of Treasuries fell to just $6.8 billion in June, compared with $56.6 billion in May. Foreign holdings of US agency securities turned negative, with net sales of $16.8 billion.

Among major foreign holders of US Treasuries, Japan remained the largest, though its holdings dipped to $1,116.7 billion from $1,143.1 billion in May. The United Kingdom followed with $939.9 billion, while China's holdings stood at $633.4 billion.