Foreign holdings of US debt hit record high

June 15, 2012 | Business | Written by

Washington, June 15: Total foreign holdings of US Treasury securities rose to a new high in April, indicating strong international demand for US government debt, the US Treasury Department reported Friday.

In April, overall foreign holdings of US long-term securities reached $5.16 trillion, up $21 billion, or 0.4 percent, from the revised level of the previous month. It was the fourth consecutive monthly increase, Xinhua reported.

According to the Treasury International capital report, China, the largest foreign holder of US Treasury securities, boosted its holdings by $1.5 billion to $1.15 trillion in April.

Japan, the second largest foreign holder of US government debt, trimmed its holdings by $10.2 billion to $1.07 trillion.

The strong demand is key to funding the US mounting deficit, which is forecast to surpass $1 trillion for the fourth consecutive fiscal year.

IANS