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August 16, 2011

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Home » Business » Economy

Debt holdings cut

Foreign investors cut their holdings of US Treasury debt in June for the first time in more than a year.

The decline came at a time of anxiety about whether the US would raise its borrowing limit.

China, the biggest buyer of US Treasury debt, raised its investment for a third straight month. But Japan, the second-largest buyer, along with a group that includes Brazil and Russia, cut their investments. Overall foreign holdings shed 0.4 percent to US$4.5 trillion.

The June dip in overall foreign holdings represented a US$15.1 billion drop from private investors and a US$1.7 billion decline from government investors, such as central banks. Foreign governments account for about 72 percent of total foreign holdings of US Treasury debt.

China increased its holdings 0.5 percent to US$1.166 trillion.



 

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