Foreign Holdings of US Debt Hit Record High

0 Posted by - June 15, 2012 - Career & Business, Economics, Money

Color China us debt WEB 300x232 Foreign Holdings of US Debt Hit Record HighForeign demand for U.S. Treasury securities rose to a record high in April. China, the largest buyer of Treasury debt, increased its holdings slightly after trimming them for two straight months.

The Treasury Department said Friday that total foreign holdings rose 0.4 percent to $5.16 trillion. It was the fourth consecutive monthly increase.

Demand for U.S. debt is rising largely because investors are worried about Europe’s worsening debt crisis. U.S. government debt is considered one of the safest investments.

China boosted its holdings 0.1 percent to $1.15 trillion in April. That followed a 1 percent drop in March and a 0.9 percent decline in February. March’s figures were revised down from the government’s initial estimate a month ago that China had boosted its holdings in March.

Japan, the second-largest buyer of Treasury debt, trimmed its holdings 0.9 percent to $1.07 trillion. Brazil, the third-largest buyer of Treasury debt, boosted its holdings 5.3 percent to $246.7 billion.

CONTINUED at Yahoo Finance.

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