Archive · 17 Sep 2026
India’s US Treasury Holdings Reach 10-Month High After July Surge
India bought many more US government bonds in July than it did in June.
Its purchases rose from $3.39 billion to $15.2 billion.
This made India’s holdings the highest they had been in 10 months.
India also received $40.8 billion through a special Reserve Bank of India funding program.
The program encouraged money to come from overseas and from Indian diaspora deposits.
These inflows increased India’s foreign-exchange reserves to a record high.
The funding created dollar-related obligations for the RBI.
An analyst said the RBI likely invested the money in assets priced in dollars, including US Treasury securities.
India’s net purchases of US Treasury notes rose to $15.2 billion in July from $3.39 billion in June.
The July purchases lifted India’s Treasury holdings to their highest level in 10 months.
India received $40.8 billion through the end of July under the Reserve Bank of India’s special funding window.
The RBI offered concessional swaps on funds raised through diaspora deposits and overseas borrowings.
Analyst Vivek Rajpal said the RBI likely invested the resulting dollar-denominated liabilities in dollar assets.
- Who
- India, the Reserve Bank of India, and the US Department of the Treasury; analyst Vivek Rajpal also commented.
- What
- India’s net purchases of US Treasury notes surged to $15.2 billion in July.
- When
- The purchases occurred in July, following $3.39 billion in purchases in June; the special window was announced in early June.
- Where
- The purchases involved US Treasury securities, while the special-facility inflows were managed by India’s central bank.
- Why
- The increase followed large inflows through the RBI’s special window and the resulting need to invest dollar-denominated funds in dollar assets.
- July net purchases
- $15.2 billion
- June net purchases
- $3.39 billion
- Holdings level
- Highest in 10 months
- Special-window inflows
- $40.8 billion through the end of July
- Program provider
- Reserve Bank of India
- Foreign-exchange reserves
- Reached an all-time high
- Data source
- US Department of the Treasury