Foreigners bought $132 billion of U.S. securities in May, Treasury says

Foreign investors purchased a net $132.2 billion of U.S. securities in May 2026, according to the latest Treasury International Capital (TIC) data released by the U.S. Department of the Treasury. The strong inflow highlights continued overseas demand for U.S. financial assets despite concerns over inflation, interest rates, and geopolitical uncertainty. Private foreign investors drove the buying, while foreign official institutions recorded net outflows.

The report showed robust demand for U.S. equities, long-term Treasury securities, and corporate bonds. Foreign investors purchased $134 billion of U.S. equities during the month, extending a year-long trend fueled by strong stock market performance and continued enthusiasm for AI-related companies.

Foreign Investors Add $132 Billion to U.S. Securities

The Treasury’s monthly TIC report showed another month of strong capital inflows.

Key Highlights	Details
Net foreign purchases	$132.2 billion
Reporting month	May 2026
U.S. equities purchased	$134 billion
Long-term Treasury purchases	$56.6 billion
Corporate bond purchases	$52.5 billion

Overall, the figures point to sustained global confidence in U.S. financial markets.

Breakdown of Foreign Investment

Foreign demand remained broad across several asset classes.

Major inflows included:

• $134 billion into U.S. equities.
• $56.6 billion into long-term U.S. Treasury securities.
• $52.5 billion into U.S. corporate bonds.
• Continued purchases of long-term securities by private investors.

At the same time, foreign residents reduced holdings of U.S. Treasury bills by $43.5 billion, reflecting shifting preferences toward longer-duration assets.

Treasury International Capital (TIC) Report

Indicator	Value
Net TIC inflow	$132.2 billion
Private foreign inflows	$172.0 billion
Official foreign outflows	$39.9 billion
Net purchases of long-term U.S. securities	$262.8 billion

The data indicate that private investors continued to offset selling by some foreign official institutions, such as central banks and sovereign entities.

Strong Demand for U.S. Equities

The equity market remained the largest destination for foreign capital.

Key drivers included:

• Strong performance of U.S. stock markets.
• Continued enthusiasm for AI and technology companies.
• Deep market liquidity.
• Attractive corporate earnings.
• Confidence in long-term U.S. economic growth.

Foreign purchases of U.S. equities totaled $909 billion over the past 12 months, underscoring sustained overseas appetite for American stocks.

Why the Data Matters

The TIC report provides insight into global capital flows.

It helps investors assess:

• International demand for U.S. assets.
• Confidence in the U.S. economy.
• Treasury market financing conditions.
• Cross-border investment trends.
• Potential implications for interest rates and the U.S. dollar.

Strong foreign demand can help support government borrowing and financial market stability.

Challenges Ahead

Despite healthy inflows, investors continue to monitor several risks.

These include:

• Inflation trends.
• Federal Reserve interest-rate decisions.
• U.S. fiscal deficits.
• Geopolitical tensions.
• Global economic growth.
• Currency market volatility.

Changes in any of these factors could influence future cross-border investment flows.

Outlook

The $132.2 billion net inflow into U.S. securities during May demonstrates that global investors continue to view U.S. financial markets as an attractive destination despite macroeconomic and geopolitical uncertainties. Robust buying of equities, corporate bonds, and long-term Treasuries suggests confidence in both the resilience of the U.S. economy and the depth of its capital markets.

Looking ahead, future TIC data will be closely watched for signs of whether overseas investors maintain this pace of investment as the Federal Reserve’s policy outlook evolves and global financial conditions change. Continued strong foreign demand would help support U.S. capital markets and government financing needs.

What It Means for Global Financial Markets

Foreign capital remains an essential source of funding for the U.S. economy, helping finance government borrowing while supporting liquidity in equity and bond markets. Strong overseas demand for American assets also reinforces the U.S. dollar’s central role in the global financial system.

For international investors, the latest TIC figures suggest that, despite ongoing concerns over inflation, interest rates, and geopolitical risks, U.S. markets continue to offer an attractive combination of scale, liquidity, and investment opportunities. Whether this trend persists will depend on future monetary policy, corporate earnings, and the broader global economic outlook.