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China buys more US debt in September
Source: Agencies |
November 17, 2011, Thursday
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Print Edition
CHINA bought more United States Treasury debt in September, and total foreign holdings rose for a second straight month.
Total foreign holdings of Treasury debt rose 1.9 percent to US$4.66 trillion, the US Treasury Department said yesterday.
China, the largest foreign holder, bought 1 percent more to bring its total holdings to US$1.15 trillion. China had cut its purchases by 3.1 percent in August.
The gains suggest foreign demand for US debt remains strong, despite a prolonged debate this summer over increasing the nation's borrowing limit. Investors also don't appear to be concerned that Standard & Poor's downgraded the credit rating on long-term US debt in August.
S&P said it lowered the US credit rating because of politics that slowed the debt limit increase and not because it thought the US couldn't pay its bills. US government debt is considered a safe investment. It has been in high demand as the European debt crisis has intensified.
Japan, the second-largest buyer of Treasury debt, raised its holdings 2.2 percent to US$956.8 billion. Britain, the third-largest holder, boosted its holdings 6.1 percent to US$421.6 billion.
The 1.9 percent rise in overall holdings followed a 2 percent increase in August. The two gains came after small drops of 0.4 percent in July and 0.3 percent in June. The falls had been the first overall drops since April 2009.
Net buying of long-term securities, a category that includes not only US government debt but also bonds sold by US companies, rose by US$68.6 billion.
Total foreign holdings of Treasury debt rose 1.9 percent to US$4.66 trillion, the US Treasury Department said yesterday.
China, the largest foreign holder, bought 1 percent more to bring its total holdings to US$1.15 trillion. China had cut its purchases by 3.1 percent in August.
The gains suggest foreign demand for US debt remains strong, despite a prolonged debate this summer over increasing the nation's borrowing limit. Investors also don't appear to be concerned that Standard & Poor's downgraded the credit rating on long-term US debt in August.
S&P said it lowered the US credit rating because of politics that slowed the debt limit increase and not because it thought the US couldn't pay its bills. US government debt is considered a safe investment. It has been in high demand as the European debt crisis has intensified.
Japan, the second-largest buyer of Treasury debt, raised its holdings 2.2 percent to US$956.8 billion. Britain, the third-largest holder, boosted its holdings 6.1 percent to US$421.6 billion.
The 1.9 percent rise in overall holdings followed a 2 percent increase in August. The two gains came after small drops of 0.4 percent in July and 0.3 percent in June. The falls had been the first overall drops since April 2009.
Net buying of long-term securities, a category that includes not only US government debt but also bonds sold by US companies, rose by US$68.6 billion.
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