U.S. Treasury: In April, overseas purchases of U.S. securities reached $103 billion; U.S. Treasury holdings increased by $3.9 billion; China's holdings hit the lowest level since 2008.

```

The U.S. Treasury Department stated in its monthly International Capital (TIC) report released Thursday that foreign investors were estimated to have purchased $103 billion in U.S. long-term securities in April; meanwhile, their holdings of U.S. Treasury bonds increased by $3.9 billion. In March, foreign holdings of U.S. Treasuries had dropped sharply by more than $138 billion.

The report showed that among the largest holders of U.S. Treasuries:

Japan’s holdings in April increased by $18.3 billion from March’s $1.19 trillion to $1.21 trillion;

The UK’s holdings increased by $10.6 billion from $926.9 billion to $937.5 billion;

China’s holdings fell slightly by $1.2 billion from $652.3 billion to $651.1 billion, hitting a new low since 2008.

From a net transaction perspective, foreign investors made net sales of $13.6 billion in short-term U.S. Treasuries with a maturity of one year or less, while making net purchases of $50.5 billion in long-term U.S. Treasuries.

The increase in Treasury holdings brought the total foreign holdings to $9.353 trillion, higher than in March, but below the record $9.49 trillion set in February. Foreign investors saw about $39 billion in book losses in their long-term U.S. Treasury holdings in April due to valuation changes.

This report was released as the Federal Reserve continues to battle inflation, while AI-related stocks continue to drive the bull market in U.S. equities. The market is closely watching foreign demand for U.S. Treasuries.

On Thursday, the U.S. sold five-year Treasury Inflation-Protected Securities (TIPS), which were favored by the market, reflecting a rise in the TIPS market’s ‘real yields’ after inflation adjustment in recent weeks.

The Treasury stated that the total net foreign purchases of all assets in April (i.e., TIC net inflows) was $26.1 billion. Of this, foreign private investors saw a net outflow of $23.1 billion, while foreign official institutions had net inflows of $49.2 billion.

The Treasury added that overseas residents increased their holdings of U.S. long-term securities in April, with net purchases reaching $206 billion. Of this, net purchases by foreign private investors amounted to $164.4 billion, while foreign official institutions’ net purchases were $41.6 billion.

Risk Warnings and DisclaimerThe market carries risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not consider the individual investment objectives, financial situations, or needs of any particular user. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment according to this article is at one's own risk. ```