India’s Record U.S. Treasury Buying Contrasts With China’s 18-Year Low

India sharply increased its purchases of U.S. Treasury securities in July, reaching a record monthly net buying level as China’s official holdings of U.S. government debt declined to their lowest point in 18 years.

According to data shared by Coin Bureau, India’s Treasury purchases rose from $3.39 billion in June to $15.2 billion in July. The increase marked India’s highest monthly net buying of U.S. Treasuries on record.

The figures point to a notable divergence between the Treasury holdings of two major Asian economies. While India increased its exposure significantly in July, China continued reducing its holdings, with its official U.S. Treasury position falling to $618 billion.

India Records Largest Monthly Treasury Purchase

India’s July purchases represented a substantial increase from the previous month, when net buying stood at $3.39 billion. The $15.2 billion figure was described by Wu Blockchain as a record for India’s monthly net purchases of U.S. Treasury securities.

U.S. Treasuries are government debt securities issued by the U.S. Department of the Treasury. They are widely held by foreign governments, central banks, financial institutions and other international investors.

The latest Indian figure is notable because the increase occurred alongside a broader shift in international capital flows toward U.S. equities, according to data cited in the Wu Blockchain post.

China’s Treasury Holdings Reach 18-Year Low

China’s official U.S. Treasury holdings fell to $618 billion, according to the Financial Times data cited by Wu Blockchain. That was the lowest level since August 2008.

China’s current holdings are also substantially below their historical peak. Its Treasury holdings exceeded $1.3 trillion in 2013 before declining over subsequent years.

The reduction has changed the composition of China’s U.S. financial asset exposure over time, although the Treasury figures alone do not establish the reasons behind individual changes in holdings.

The contrast with India’s July purchases is particularly pronounced given the scale of India’s monthly increase compared with its June position.

Foreign Investors Shift More Toward U.S. Equities

The Treasury figures come as international investors have also increased their allocation to U.S. equities relative to U.S. government debt.

International inflows into U.S. stocks averaged 2.8% of U.S. gross domestic product in the year through June, compared with 2% for Treasuries, according to the data cited in the post.

Wu Blockchain noted that this marked the first time this century that international equity inflows had exceeded Treasury inflows.

The comparison provides broader context for the contrasting positions of India and China, but the figures do not by themselves establish whether either country’s Treasury holdings were directly influenced by the wider shift toward U.S. equities.

The latest data therefore leaves the next monthly Treasury holdings markets reports as the clearest measure of whether India’s record July purchase and China’s reduced position represent continuing changes in their respective U.S. asset allocations.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.