Foreign Holdings of US Debt Hit Record High

Tuesday, 15 May 2012 09:03 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Foreign demand for U.S. Treasury securities rose to a record high in March. China, the largest buyer of Treasury debt, increased its holdings for a third straight month.

Total foreign holdings rose 0.3 percent to a $5.12 trillion, marking the eighth consecutive monthly increase, the Treasury Department reported Tuesday.

U.S. government debt is considered one of the safest investments. Demand has increased as investors worry about the uncertainty surrounding Europe's debt crisis.

China boosted its holdings 1.3 percent to $1.17 trillion, its third straight increase. China had trimmed its holdings for five straight months before the January increase.

Japan, the second-largest buyer of Treasury debt, trimmed its holdings slightly, cutting them 0.2 percent to $1.08 trillion.

Brazil, the third-largest foreign buyer of Treasury debt, increased its holdings in March to $237 billion. Britain reduced its holdings to $112 billion.

Demand for foreign holdings has remained strong despite the first-ever downgrade of the government's debt last August. Standard & Poor's lowered its rating on long-term Treasury debt one notch following a prolonged debate in Congress over increasing the nation's borrowing limit.

The nation's borrowing needs will remain high based on projections of future deficits. The Congressional Budget Office expects the federal deficit will total $1.17 trillion for this budget year, which ends Sept. 30. That would give the country four consecutive years of deficits topping $1 trillion.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved