Foreign holdings of US Treasury debt up in March

Wednesday, May 15th, 2013 | Finance News

WASHINGTON (AP) — Foreign demand for U.S. Treasury securities rose to a record level in March even though China, the largest foreign holder of Treasury debt, reduced its holdings slightly. The overall increase indicated that foreign investors remain confident in holding U.S. debt.

The Treasury Department says total foreign holdings of Treasury securities increased 0.7 percent in March compared with February to a record $5.76 trillion.

That is an increase of 11.9 percent over a year ago.

China's holdings dipped by 0.1 percent to $1.25 trillion. Japan, the second-largest holder, also trimmed its holdings to $1.11 trillion, down 0.1 percent.

The third largest holder, five countries in the Caribbean including the Bahamas and the Cayman Islands, saw their holdings rise 3.9 percent to $291.3 billion.