Core Viewpoint - The latest TIC report from the U.S. Treasury reveals that foreign holdings of U.S. Treasury securities have reached a historic high of $9.13 trillion, countering claims of a "June debt collapse" and indicating a trend of increasing investment in U.S. debt instruments [1][9]. Group 1: Foreign Holdings Overview - The total amount of U.S. Treasury securities held by foreign entities surpassed $9.1 trillion for the first time, increasing by $130 billion since March [1]. - Japan, the UK, and mainland China remain the top three holders of U.S. Treasuries, with Japan increasing its holdings by $12.6 billion to $1.1476 trillion, the UK adding $48.7 billion to reach $858.1 billion, and China slightly increasing its holdings by $1 billion to $756.4 billion [3][4]. Group 2: Country-Specific Changes - Japan's net purchase of U.S. Treasuries in June was $4.21 billion, while the UK saw a net increase of $17.58 billion, both benefiting from the appreciation of Treasury prices [5][7]. - In contrast, mainland China's increase in holdings was primarily due to the rise in the value of existing bonds rather than new purchases, as it sold $55.36 billion in long-term Treasuries while buying $1.91 billion in short-term ones, resulting in a net sell-off of $53.45 billion [5][7]. Group 3: Market Dynamics and Future Outlook - The anticipated interest rate cuts by the Federal Reserve are expected to further influence investor behavior, leading to both passive increases in the value of existing holdings and active buying as investors seek capital gains [7]. - Despite ongoing geopolitical risks and concerns regarding U.S. debt levels exceeding $40 trillion, U.S. Treasuries continue to be viewed as a reliable "safe asset" in the global financial landscape, reinforcing their status as a cornerstone of liquidity and risk management [9].