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.