The story appears on

Page A16

March 16, 2011

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Economy

Japan buys more US debt for 8th month

JAPAN increased its holdings of United States government debt for an eighth straight month in January.

But the second-largest holder of US Treasury bonds will likely scale back its purchases of foreign holdings, and even sell off some, in coming months to divert money toward rebuilding a nation devastated by a powerful earthquake and an ensuing nuclear crisis.

The Treasury Department said yesterday that Japan boosted its holdings 0.4 percent to US$885.9 billion in January.

Economists said a reduction in Japan's foreign holdings would put some upward pressure on US interest rates. But they cautioned the change would have a limited impact.

The Federal Reserve, which has been buying Treasury securities as part of its efforts to keep interest rates low, would move to counteract any significant increase in rates, they said.

"Any impact from the sales would be short-term and relatively small," said Nariman Behravesh, chief economist at IHS Global Insight.

China, the second-largest holder of US debt, reduced its holdings for a third straight month, trimming them 0.5 percent to US$1.15 trillion.

Overall, foreign holdings of Treasury securities rose 0.3 percent to US$4.45 trillion in January. This data is carefully followed to determine whether foreign countries still have an appetite for Treasury debt at a time of record federal deficits.





 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend