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Foreign Treasury holdings fall 0.4%
Source: Agencies |
September 17, 2011, Saturday
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Print Edition
Print Edition
THE two biggest foreign buyers of United States Treasury securities kept investing during a tense fight in Washington over raising the government's borrowing limit. But overall foreign holdings fell for only the second time in more than two years, a sign that some investors are worried about a possible default.
The Treasury Department's monthly report issued yesterday showed that China, the biggest buyer of US Treasury debt, increased its investments in July for a fourth straight month. Japan, the second-largest buyer, also invested more after cutting holdings the previous month.
But total holdings dipped 0.4 percent to US$4.48 trillion in July, the second fall since April 2009. Russia, India and the Caribbean banking centers, which includes the Bahamas and Bermuda, all trimmed their holdings.
Congress and the Obama administration reached a deal on August 2 to increase the nation's borrowing limit by more than US$2 trillion. The agreement was approved just hours before the US faced a potential default on its debt.
Analysts said the near-default rattled some investors, especially those overseas. Days after the deal was reached, Standard & Poor's downgraded the credit rating on long-term US debt one notch from AAA to AA+.
The biggest investors kept buying. China's holdings rose 0.7 percent to US$1.17 trillion. Japan's holdings increased 0.4 percent to US$914.8 billion. The United Kingdom, the third-largest buyer, boosting its holdings 1.4 percent to US$352.5 billion.
Net purchases of long-term securities, a category that includes not only US government debt but also bonds sold by US corporations, increased US$95 billion in July.
The Treasury Department's monthly report issued yesterday showed that China, the biggest buyer of US Treasury debt, increased its investments in July for a fourth straight month. Japan, the second-largest buyer, also invested more after cutting holdings the previous month.
But total holdings dipped 0.4 percent to US$4.48 trillion in July, the second fall since April 2009. Russia, India and the Caribbean banking centers, which includes the Bahamas and Bermuda, all trimmed their holdings.
Congress and the Obama administration reached a deal on August 2 to increase the nation's borrowing limit by more than US$2 trillion. The agreement was approved just hours before the US faced a potential default on its debt.
Analysts said the near-default rattled some investors, especially those overseas. Days after the deal was reached, Standard & Poor's downgraded the credit rating on long-term US debt one notch from AAA to AA+.
The biggest investors kept buying. China's holdings rose 0.7 percent to US$1.17 trillion. Japan's holdings increased 0.4 percent to US$914.8 billion. The United Kingdom, the third-largest buyer, boosting its holdings 1.4 percent to US$352.5 billion.
Net purchases of long-term securities, a category that includes not only US government debt but also bonds sold by US corporations, increased US$95 billion in July.
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