Foreign Investors Pour Record $942 Billion into US Stocks, Shun Treasuries
Foreign investors purchased a record $942 billion in US stocks and investment fund shares over the 12 months through July, the highest rolling total since records began in 1985, according to US Treasury data. In Q2 alone, net buying reached $426 billion, up 62% year-on-year. Meanwhile, foreign demand for US Treasuries cooled, with net bond purchases falling to $188 billion in Q2 from $314 billion in Q1. Analysts attribute part of the surge to Korean investors diversifying due to domestic concentration limits. Deutsche Bank's George Saravelos called it a "huge shift" in US asset markets.
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Foreign Investors Buy Record $942 Billion in US Stocks, Shun Treasuries
Foreign investors purchased a record $942 billion in US stocks and investment fund shares over the 12 months through July, the highest rolling total since records began in 1985, according to US Treasury data cited by the Financial Times. In the second quarter alone, net buying reached $426 billion, up 62% year-on-year and a new quarterly record. Meanwhile, foreign demand for US Treasuries cooled sharply, with net bond purchases falling to $188 billion in Q2 from $314 billion in Q1. The divergence is reshaping global capital flows. Brad Setser, a senior fellow at the Council on Foreign Relations, attributed part of the surge to Korean investors forced to diversify due to concentration limits in their domestic market. Deutsche Bank global FX research head George Saravelos called it a 'huge shift' in US asset markets, reflecting a booming private sector but deteriorating public sector balance sheet. The shift raises concerns about US Treasury demand as the government's debt surpasses $40 trillion, with 30-year yields hitting 5.53%, the highest since 2004. Saravelos noted that the dollar's value may now correlate more with equity inflows than bond inflows, marking a break from past safe-haven patterns.
Read sourceOverseas Investors Pour $942 Billion into US Stocks in 12 Months, a Record Since 1985
According to US Treasury data, overseas investors purchased a record $942 billion in US stocks and investment fund shares over the 12 months ending July, the highest rolling total since records began in 1985. The Commerce Department reported Q2 net purchases surged 62% year-on-year to $426 billion, surpassing the previous quarterly record of $299 billion set in 2022. In contrast, foreign demand for US bonds fell to $188 billion in Q2 from $314 billion in Q1. Monthly data shows buying accelerated through Q2, peaking at $182 billion in June before dropping sharply to $37 billion in July, though net buying continued for a sixth consecutive month. The inflows coincided with a 20% rise in the S&P 500 over the past 12 months and a 14.9% Q2 gain. Council on Foreign Relations senior fellow Brad Setser attributed part of the surge to Korean investors, who faced concentration limits as Samsung and SK Hynix rallied, forcing them to diversify into US stocks. Setser warned that weakening foreign demand for US Treasury bonds, amid widening fiscal deficits, could pressure US debt financing by requiring more domestic buyers or higher borrowing costs.
Read sourceHistoric Shift: Foreign Investors Buy $942B in US Stocks, Shun Treasuries
US Treasury data shows a historic shift in global capital flows: foreign investors purchased a record $942 billion in US stocks and investment fund shares in the 12 months through July 2026, the highest rolling total since records began in 1985. In Q2 alone, net purchases hit $426 billion, up 62% year-on-year. Concurrently, foreign demand for US Treasuries cooled, with Q2 net bond purchases of $188 billion down from $314 billion in Q1. Analysts attribute the surge partly to Korean investors diversifying after a domestic stock rally, and note that the trend reflects strong US equity returns versus rising fiscal concerns. Deutsche Bank's George Saravelos called it a 'huge shift' in US asset markets, linking dollar strength more to equity inflows than bond flows. The shift raises concerns about funding US deficits as foreign bond demand wanes, potentially pushing up long-term borrowing costs. The 30-year Treasury yield hit 5.53% in September, a 2004 high.
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Overseas Investors Pour Record $942 Billion Into US Stocks Over 12 Months
According to US Treasury data, overseas investors' net purchases of US stocks and investment fund shares reached $942 billion in the 12 months through July, the highest rolling annual total since records began in 1985. US Bureau of Economic Analysis data shows second-quarter net purchases jumped to $426 billion, up 62% from the same period in 2025 and surpassing the previous quarterly record of $299 billion set in 2022. In contrast, overseas demand for US bonds fell, with second-quarter net purchases of $188 billion down from $314 billion in the first quarter. Monthly data shows the buying pace accelerated in the second quarter, with net purchases of $110 billion in April and $182 billion in June, before sharply dropping to $37 billion in July. Council on Foreign Relations senior fellow Brad Setser attributed part of the surge to Korean investors being forced to diversify into global equities, including US stocks, due to concentration limits triggered by the strong performance of Samsung and SK Hynix. Setser warned that declining foreign demand for US Treasury bonds, amid rising US fiscal deficits, could pressure US debt financing by requiring more domestic buyers or higher borrowing costs.
Read sourceOverseas Investors Pour Record $942 Billion Into US Stocks Over 12 Months, Bond Demand Slips
Overseas investors have poured a record $942 billion into US stocks over the 12 months through July, the highest rolling total since records began in 1985, according to US Treasury data cited by Zhitong Finance. The second quarter alone saw net purchases of $426 billion, up 62% from the same period in 2025 and surpassing the previous quarterly record of $299 billion set in 2022. In contrast, foreign demand for US bonds fell to $188 billion in Q2 from $314 billion in Q1. The surge in equity inflows coincided with a 20% rise in the S&P 500 over the past 12 months. Council on Foreign Relations senior fellow Brad Setser attributed part of the Q2 spike to delayed flows from a weak Q1, but noted a broader trend of record buying. He specifically cited strong gains in South Korean stocks like Samsung and SK Hynix, which forced local investors to diversify into US equities due to concentration limits. Setser warned that weakening foreign demand for US Treasury bonds, amid a widening fiscal deficit, could pressure the US government to rely more on domestic buyers or accept higher financing costs.
Overseas Investors Pour Record $942 Billion Into US Stocks Over 12 Months
According to US Treasury data, overseas investors' net purchases of US stocks and investment fund shares reached $9420 billion in the 12 months through July 2025, the highest rolling annual total since records began in 1985. The second quarter alone saw a record $4260 billion in net buying, up 62% year-on-year and surpassing the previous quarterly record of $2990 billion set in 2022. In contrast, foreign demand for US bonds fell to $1880 billion in Q2 from $3140 billion in Q1. Monthly data shows the buying accelerated through Q2, peaking at $1820 billion in June before dropping sharply to $37 billion in July, though net buying continued for a sixth consecutive month. The inflows coincided with a 20% rise in the S&P 500 over the past 12 months. Council on Foreign Relations senior fellow Brad Setser noted that the Q2 surge partly reflected delayed Q1 flows, but the broader trend remains record foreign buying of US equities. He identified strong Korean stock market gains as a key driver, with local investors hitting concentration limits and rotating into US stocks. Setser warned that declining foreign demand for US Treasury bonds, amid widening fiscal deficits, could pressure US debt financing by requiring more domestic buyers or higher borrowing costs.
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