Foreign holdings of U.S. debt hit $5.46 trillion
WASHINGTON (AP) — Foreign demand for U.S. Treasury securities rose to a record level in September for the ninth straight month. The increase suggests overseas investors are confident in U.S. debt despite a potential budget crisis.
The Treasury Department says total foreign holdings rose to $5.46 trillion in September, up 0.1 percent from August.
China, the largest holder of U.S. government debt, barely increased its holdings in September to $1.16 trillion. Japan, the second-largest holder, increased its holdings to $1.13 trillion. Brazil trimmed its holdings to $267 billion.
Investors continued to buy U.S. Treasurys, even as lawmakers and President Barack Obama remained at odds over whether to raise the U.S. borrowing limit as part of a broader budget deal.
The Treasury Department says total foreign holdings rose to $5.46 trillion in September, up 0.1 percent from August.
China, the largest holder of U.S. government debt, barely increased its holdings in September to $1.16 trillion. Japan, the second-largest holder, increased its holdings to $1.13 trillion. Brazil trimmed its holdings to $267 billion.
Investors continued to buy U.S. Treasurys, even as lawmakers and President Barack Obama remained at odds over whether to raise the U.S. borrowing limit as part of a broader budget deal.
"China, the largest holder of U.S. government debt, barely increased its holdings in September to $1.16 trillion."
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The largest holder if US debt is the Social Security Trust Fund. The government raided that decades ago and replaced all that money with government issued IOU's.
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Currently the debt to the trust fund in somewhere in the neighborhood of 4-6 trillion dollars which is 3-6 times more than China has in US debt.
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