the republic logo

Foreign holdings of US Treasury debt rise to record high, topping $6 trillion

bug
Share/Save/Bookmark

WASHINGTON — Foreign buyers of U.S. Treasury securities increased their holdings in June, topping $6 trillion for the first time.

Total foreign holdings rose 0.6 percent to $6.01 trillion, up from $5.98 trillion in May, the Treasury Department said Friday in its monthly report.

The increase came despite the fact that the two biggest foreign owners of Treasury securities reduced their holdings slightly.

PHOTO: FILE - In this Aug. 22, 2013 file photo, Indian and foreign currency notes lie in a drawer of a foreign currency exchange shop in Bangalore, India. The Treasury Department reports how much foreign buyers adjusted their holdings of U.S. debt in June 2014 on Friday, Aug. 15, 2014. (AP Photo/Aijaz Rahi, File)
FILE - In this Aug. 22, 2013 file photo, Indian and foreign currency notes lie in a drawer of a foreign currency exchange shop in Bangalore, India. The Treasury Department reports how much foreign buyers adjusted their holdings of U.S. debt in June 2014 on Friday, Aug. 15, 2014. (AP Photo/Aijaz Rahi, File)

China, the top foreign buyer of U.S. Treasury debt, trimmed its holdings by 0.2 percent to $1.27 trillion after a 0.6 percent increase in May. Japan, the second-biggest foreign buyer, saw its holdings slip a slight $600 million to $1.22 trillion.

Belgium, Brazil and Taiwan were among the countries increasing their holdings.

Foreign central banks are big holders of U.S. Treasuries, which are viewed as one of the world's safest investments. In June, foreign government holdings of Treasury debt totaled $4.1 trillion, two-thirds of the total foreign holdings.

Foreign demand for Treasury debt is expected to remain strong this year, helped by a congressional agreement to avoid a new fight over the U.S. debt ceiling until March 2015.

A standoff in August 2011 rattled financial markets and the political gridlock led the credit rating firm Standard & Poor's to downgrade its AAA rating of U.S. debt for the first time in history.

Think your friends should see this? Share it with them!

All comments are moderated before posting. Your email address must be verified with Disqus in order for your comment to appear.
View our commenting guidelines and FAQ's here.

Story copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.


We also have more stories about:
(click the phrases to see a list)

Category:

Follow The Republic:

All content copyright ©2014 The Republic, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.