The latest International Capital Flows (TIC) data from the U.S. Treasury Department shows that in the 12 months ending August 2026, foreign investors made net purchases of approximately $1.01 trillion in U.S. stocks, a record high; during the same period, they made net purchases of approximately $464.1 billion in U.S. corporate bonds, totaling approximately $1.47 trillion. In comparison, in the same period of 2025, foreign investors made net purchases of approximately $633.2 billion in U.S. stocks and approximately $354.2 billion in corporate bonds, totaling less than $990 billion. The fund flows indicate that overseas investors are continuously increasing their allocation to U.S. stocks and corporate credit assets, with stocks showing a more significant increase in attractiveness. Mitsubishi UFJ previously pointed out that the AI investment boom and the performance of related technology stocks are important factors attracting overseas funds into the U.S. market, but this inflow also makes the dollar more vulnerable to reversals in AI investment sentiment.
