2010-02-16 Japan surpasses China as largest holder of U.S. Treasury securities
WASHINGTON - China trimmed its holdings of U.S. debt by 34.2 billion dollars in December 2009, allowing Japan to take over as the largest holder of U.S. Treasury securities, the U.S. Treasury Department reported on Tuesday.
The figures reflect demand for U.S. Treasury obligations and other assets including stocks and government agency debt, key to funding the massive U.S. balance of payments deficit with the rest of the world.
Foreign holdings of U.S. Treasury securities fell by 53 billion dollars in December, surpassing the previous record of a 44.5 billion dollars drop in April 2009, according to the Treasury International Capital report.
If the reductions in holdings continue, the U.S. government could be forced to make higher interest payments at a time when it is running record federal deficits.
WASHINGTON - China trimmed its holdings of U.S. debt by 34.2 billion dollars in December 2009, allowing Japan to take over as the largest holder of U.S. Treasury securities, the U.S. Treasury Department reported on Tuesday.
The figures reflect demand for U.S. Treasury obligations and other assets including stocks and government agency debt, key to funding the massive U.S. balance of payments deficit with the rest of the world.
Foreign holdings of U.S. Treasury securities fell by 53 billion dollars in December, surpassing the previous record of a 44.5 billion dollars drop in April 2009, according to the Treasury International Capital report.
If the reductions in holdings continue, the U.S. government could be forced to make higher interest payments at a time when it is running record federal deficits.
