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Foreign investors cut Treasury bills, highlighting stablecoin funding links
In June, foreign investors bought $181.4 billion of US equities but sold $29.0 billion of Treasury bills, reducing holdings of short term Treasuries to about $1.400 trillion from about $1.430 trillion in May.
CryptoSlate reports that foreign investors sent a net $133.5 billion into US financial markets in June, but their Treasury activity lagged sharply, with sales of $29.0 billion of Treasury bills during the same month.
According to the outlet, foreign buyers purchased $181.4 billion of US equities while taking in only $6.8 billion of long term Treasuries, and they reduced demand for bills commonly used as a cash substitute. Foreign holdings of short term Treasuries fell to about $1.400 trillion in June from about $1.430 trillion in May, and the June sale equaled roughly 2.0% of the previous month's holdings.
The story links that pattern to stablecoins as part of Washington's broader debt strategy, saying stablecoin issuers including Tether and Circle keep much of the assets backing their tokens in Treasury bills and closely related instruments.
CryptoSlate adds that token issuance alone does not appear large enough to explain the $29.0 billion bill reduction, and it cites the US Treasury International Capital report as the data source that combines security purchases with shorter term banking flows, which can mask different underlying decisions. The outlet notes that foreigners sold $43.5 billion in May and $29.0 billion in June, marking a second straight monthly reduction.