Foreign investors pour $250B into U.S. stocks and treasuries in May — highest since 2022

Foreign investors pour $250B into U.S. stocks and treasuries in May — highest since 2022

Foreign investors have shown significant interest in the U.S. market, pouring a record $250 billion into U.S. stocks and treasuries in May 2025. This marks the highest net foreign acquisition of long-term securities since May 2022, according to data released by the U.S. Department of the Treasury.

The Treasury International Capital (TIC) data for May 2025 revealed that net foreign private inflows totaled $333.2 billion, while net foreign official outflows amounted to $22.1 billion. Foreign residents increased their holdings of long-term U.S. securities by $318.5 billion, with private investors contributing $287.5 billion and official institutions adding $31.1 billion [1].

The data also shows that U.S. residents increased their holdings of long-term foreign securities by $59.1 billion. After adjustments, such as estimated foreign portfolio acquisitions of U.S. stocks through stock swaps, overall net foreign sales of long-term securities are estimated to have been $259.4 billion in May.

The increase in foreign holdings of U.S. Treasury bills and other short-term U.S. securities also reflects a growing interest in the U.S. market. Foreign resident holdings of all dollar-denominated short-term U.S. securities and other custody liabilities increased by $10.3 billion. Additionally, banks’ own net dollar-denominated liabilities to foreign residents increased by $41.4 billion.

The data underscores the continued attractiveness of the U.S. market for foreign investors, driven by factors such as the strength of the U.S. economy, the stability of U.S. financial markets, and the allure of U.S. stocks and treasuries. However, it is important to note that TIC data provides a window into foreign ownership of U.S. securities but cannot attribute holdings with complete accuracy.

References:
[1] https://home.treasury.gov/news/press-releases/sb0196