Foreign investors sent a net $133.5 billion into US financial markets in June, but sold $29 billion of Treasury bills during the same month, according to data highlighted in a CryptoSlate report.

The two figures point to diverging trends within the same monthly flow. Most of the incoming capital went into US equities rather than government debt. Foreign buyers purchased $181.4 billion of US stocks in June, compared with just $6.8 billion of long-term Treasuries. At the short end of the market, foreign investors reduced their holdings of Treasury bills, the instruments typically used to park cash for short periods.

This divide between strong demand for equities and weaker demand for short-term government debt helps explain why stablecoins have become part of Washington's debt strategy. Issuers such as Tether and Circle hold much of the reserves backing their tokens in Treasury bills and closely related assets.

  • $133.5 billion: net foreign inflow into US financial markets in June
  • $29 billion: Treasury bills sold by foreign investors in June
  • $181.4 billion: foreign purchases of US equities
  • $6.8 billion: foreign purchases of long-term Treasuries

Source: CryptoSlate