Foreign holdings of US Treasury debt hit record
February 20, 2014, 12:20 am TWN
WASHINGTON--Foreign buyers of U.S. Treasury securities increased their holdings to a record in December even though the two largest holders of U.S. government debt — China and Japan — reduced their shares.
The Treasury Department says total foreign holdings rose 1.4 percent in December to US$5.79 trillion, surpassing the old record set in March of US$5.73 trillion. Foreign holdings had fallen from April through July before rising again in August.
China, the largest foreign buyer of Treasury debt, reduced its holdings to US$1.27 trillion in December. That marked a 3.6 percent drop from China's November level of US$1.32 trillion, a record for that country.
Japan, the second-largest buyer, trimmed its holdings to US$1.18 trillion in December. That was down 0.3 percent from November's total, a record for Japan.