Foreign holdings of U.S. Treasuries fell by $72.1 billion in June to $9.299 trillion, with Japan and China posting the biggest reductions and overseas net purchases slowing to $6.8 billion from $56.6 billion in May. Japan, the largest non-U.S. holder, cut its position by about $26.4 billion to $1.116 trillion, while China reduced holdings by $25.9 billion to $633.4 billion, the lowest level since September 2008; the United Kingdom also trimmed its position to $939.9 billion. The Treasury data capture both valuation changes and transactions, so lower holdings do not necessarily imply equivalent outright selling, but the softer flow data added to scrutiny of foreign demand for U.S. government debt. The pullback came as the 30-year Treasury yield rose to 5.31%, its highest since 2007, and the 10-year yield approached 4.72%, reflecting concerns over wider fiscal deficits, heavier debt issuance, persistent inflation and uncertainty over the Federal Reserve's policy path. Analysts tied Japan's decline in part to yen-support operations, while broader pressure on long-dated bonds has also been linked to growing corporate bond supply tied to artificial intelligence infrastructure spending. The spread between 2-year and 30-year Treasury yields widened to 113 basis points, the steepest since April, as investors reassessed the drivers of long-term rates.