Tags: Foreign | Holdings

China Buys More US Treasuries After 2 Months of Declines

Thursday, 16 Sep 2010 11:34 AM

China, the largest holder of U.S. Treasury debt, slightly increased its holdings in July after two months of declines.

China's holdings of Treasury securities edged up to $846.7 billion in July, the Treasury Department reported Thursday. That's an increase of 0.4 percent, after declines of 2.7 percent in June and 3.6 percent in May.

The debt figures are being closely watched at a time when the U.S. government is running record annual deficits. A drop in foreign demand could lead to higher interest rates in the United States.

Japan, the second largest holder of U.S. Treasury bonds and notes, increased its holdings 2.2 percent to $821 billion. Britain, which holds the No. 3 spot, saw a 3.3 percent increase in holdings to $374.3 billion.

Net foreign purchases of Treasury notes and bonds by all countries totaled $29.98 billion in July, down 9.9 percent from the June figure of $33.26 billion in net foreign purchases.

Net purchases of all long-term securities, a category that includes government debt and the debt of corporations, totaled $61.2 billion in July. That's up 37.8 percent from $44.4 billion in net purchases in June. It was the largest amount since net purchases totaled $81.5 billion in April.

The federal budget deficit surged to an all-time high of $1.4 trillion last year, more than three times the previous record, and is expected to fall only slightly to around $1.3 trillion in this budget year, which ends Sept. 30.

However, the interest rates the government has had to pay for this debt have remained low. That's because the weak economy has depressed borrowing by the private sector and the Federal Reserve has kept a key interest rate it controls at a record low in an effort to lift the economy out of the recession.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

   
1Like our page
2Share
StreetTalk
China, the largest holder of U.S. Treasury debt, slightly increased its holdings in July after two months of declines. China's holdings of Treasury securities edged up to $846.7 billion in July, the Treasury Department reported Thursday. That's an increase of 0.4 percent,...
Foreign,Holdings
296
2010-34-16
Thursday, 16 Sep 2010 11:34 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

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