BUSINESS

Foreign holdings of US Treasury securities rise to record $6.07 trillion in August

10/16/2014 04:09 EDT | Updated 12/16/2014 05:59 EST
WASHINGTON - Foreign buyers of U.S. Treasury securities boosted their holdings in August to a record high. China, the largest foreign owner of Treasury debt, increased its holdings after two months of reductions.

The Treasury Department says in its monthly report that foreign holdings increased 1.1 per cent to an all-time high of $6.07 trillion, after having fallen by 0.3 per cent in July.

China, the top foreign buyer of U.S. Treasury debt, increased its holdings by 0.4 per cent to $1.27 trillion. Japan, the No. 2 buyer, boosted its holdings by 0.9 per cent to $1.23 trillion.

Foreign demand for Treasury debt is expected to remain strong this year, driven in part by geopolitical tensions that make U.S. Treasury bonds attractive as a safe haven.