Analysis · 17 October 2026

August 2026: foreign buying of US shares rebounds

Net inflows more than doubled to $199.8bn as private investors returned to US equities and Treasuries after a July pause.

Foreign money returned to US markets in August. Net portfolio inflows to the US reached $199.8bn, more than double July's $87.4bn, according to the US Treasury's monthly TIC release published on 16 October.

Shares led the rebound

Private foreign investors bought a net $131.9bn of US equities in August, after selling $10.6bn in July. They also returned to Treasury bonds and notes, buying $90.9bn after selling $29.1bn the month before. Corporate bonds drew a further $36.8bn.

Over the 12 months to August, private buying of US shares came to $844.2bn, up from $644.9bn in the previous 12 months. Equities are now the largest single destination for foreign money entering the US.

Central banks: bonds in, bills out

Foreign official institutions, mainly central banks, bought a net $42.9bn of long-term US securities in August, but cut their holdings of short-term Treasury bills by $42.2bn. Their overall net inflow was a modest $21.3bn.

Who holds the debt

Total foreign holdings of US Treasuries stood at $9,248.1bn at the end of July, $138.6bn higher than a year earlier. Japan remains the largest holder at $1,103.9bn, although that is $51.5bn lower than a year ago. The United Kingdom, a major custody centre, added $102.4bn to reach $998.3bn. China's holdings fell by $77.6bn to $618.0bn.

Elsewhere

Japan: in the 52 weeks to 10 October, Japanese investors were net sellers of ¥5.37tn of foreign securities, mostly long-term bonds, while foreign investors bought a net ¥6.95tn of Japanese securities, including ¥11.98tn of shares.
Reserves: the dollar's share of global reserves was 56.70% in the second quarter of 2026, against 57.18% in the first. The euro's share rose to 20.60%.
Europe: foreign investors bought a net €1,152.8bn of euro area shares and bonds in the 12 months to July 2026, up from €827.6bn a year earlier.

What to watch

The next TIC release, covering September, is due on 18 November 2026. The ECB publishes August euro area figures on 20 October, and the BIS releases its latest cross-border banking statistics on 30 October.

Sources: US Treasury TIC release of 16 October 2026 and TIC Table 5; Ministry of Finance, Japan; IMF COFER; ECB statistics. This article is general information, not investment advice.