Overseas buyers raise US debt buying
Source: Agencies |
October 19, 2011, Wednesday
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Print Edition
Print Edition
OVERSEAS buyers of United States Treasury debt stepped up their purchases in August after two months of declines. Foreign holdings gained after lawmakers in Washington ended a fight over raising the government's borrowing limit.
The Treasury Department reported yesterday that total holdings rose 2 percent to US$4.57 trillion, following the first drops since April 2009. Japan and Britain, two of the three largest buyers of US Treasury debt, both boosted their holdings.
But China, the largest foreign buyer, cut its holdings 3.1 percent to US$1.14 trillion.
Congress and the Obama administration reached a deal on August 2 to increase the nation's borrowing limit by more than US$2 trillion, just hours before the US faced a potential default on its debt. Days after that deal was reached, Standard & Poor's downgraded the credit rating on long-term US debt one notch from AAA to AA+.
The decline in China's holdings was the first decrease since a 0.8 percent decline in February.
Japan, the second-largest buyer of Treasury debt, raised its holdings 2.4 percent to US$936.6 billion while Britain, the third-largest buyer, boosted its holdings 12.4 percent to US$397.2 billion.
The 2 percent rise in overall holdings came from a big 6.5 percent rise in holdings of private investors. Holdings by foreign governments edged up 0.2 percent in August. Foreign holdings, by central banks, represent 70 percent of total foreign ownership of US Treasury securities.
Net purchases of long-term debt that also includes bonds sold by US firms rose by US$57.9 billion in August, the biggest monthly gain since a rise of US$61.3 billion in December 2010.
The Treasury Department reported yesterday that total holdings rose 2 percent to US$4.57 trillion, following the first drops since April 2009. Japan and Britain, two of the three largest buyers of US Treasury debt, both boosted their holdings.
But China, the largest foreign buyer, cut its holdings 3.1 percent to US$1.14 trillion.
Congress and the Obama administration reached a deal on August 2 to increase the nation's borrowing limit by more than US$2 trillion, just hours before the US faced a potential default on its debt. Days after that deal was reached, Standard & Poor's downgraded the credit rating on long-term US debt one notch from AAA to AA+.
The decline in China's holdings was the first decrease since a 0.8 percent decline in February.
Japan, the second-largest buyer of Treasury debt, raised its holdings 2.4 percent to US$936.6 billion while Britain, the third-largest buyer, boosted its holdings 12.4 percent to US$397.2 billion.
The 2 percent rise in overall holdings came from a big 6.5 percent rise in holdings of private investors. Holdings by foreign governments edged up 0.2 percent in August. Foreign holdings, by central banks, represent 70 percent of total foreign ownership of US Treasury securities.
Net purchases of long-term debt that also includes bonds sold by US firms rose by US$57.9 billion in August, the biggest monthly gain since a rise of US$61.3 billion in December 2010.
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