Foreign capital inflows into the United States reached $199.8 billion in August, more than double July’s $83.7 billion. The U.S. Treasury’s October 16 release showed private investors supplied most of the month’s net inflow.

Foreign Capital Inflows Reverse July’s Weakness

Private foreign inflows totaled $178.5 billion, while official institutions contributed $21.3 billion. The combined figure covers long-term securities, short-term U.S. securities and banking flows rather than direct investment.

U.S. cross-border capital flows, $ billions

July total TIC inflow: $83.7B

August total TIC inflow: $199.8B

July adjusted long-term transactions: -$27.9B

August adjusted long-term transactions: $279.2B

Source: U.S. Treasury TIC releases for July and August 2026. Bar lengths use a $300 billion absolute scale; red denotes a net outflow.

The adjusted long-term series swung from $27.9 billion in net foreign sales during July to $279.2 billion in net purchases during August. That $307.1 billion reversal marks a sharp improvement in demand for U.S. financial assets.

Foreign Capital Inflows Favor Bonds and Stocks

Private investors bought $90.9 billion of Treasury bonds and notes, $36.8 billion of corporate bonds and $131.9 billion of equities. Official institutions added $18.1 billion of Treasury bonds and notes and $22 billion of equities.

The shift toward longer maturities matters as investors prepare for the next Federal Reserve decision. Our October FOMC meeting guide details the labor, inflation and policy signals likely to shape rate expectations.

What the Treasury Data Can and Cannot Show

Short-term positioning moved in the opposite direction. Foreign residents reduced Treasury bill holdings by $47.8 billion, while banks’ dollar-denominated liabilities to foreign residents fell by $41.6 billion.

Treasury cautions that custodial reporting cannot always identify the ultimate country owner of a security. The data therefore show broad cross-border demand, not a perfect country-by-country ownership map.

Markets will compare these flows with inflation and income trends. The latest ECB inflation outlook shows similar pressure from energy, while our report on September real earnings tracks U.S. household purchasing power.

Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.