October 17, 2014, 9:26 AM ET
U.S. Debt Held by Foreigners Hits Record $6.07 Trillion
By Ian Talley
Foreign holdings of U.S. Treasury securities hit a record high $6.07 trillion in August, up nearly $70 billion from July, as the dollar began its climb to five-year highs and the U.S. recovery showed signs of gaining steam.
Japan added more than $11 billion to its stockpile – largely in bonds and notes – while China and Belgium, a proxy trader for Beijing, added a net $12 billion to its holdings. The figures came in a monthly Treasury Department report released Thursday afternoon.
The U.S. Treasury said in its semi-annual currency report published late Wednesday that China bought roughly $135 billion in foreign currencies in the year through August to keep the value of the yuan down as growth in the Asian powerhouse slowed.
There’s a good chance that September and October could continue to set new records for foreign holdings of U.S. debt, as indicated by the steady strengthening of the dollar since August and plummeting bond yields.
Amid increasing worries about slowing emerging-market growth slowing and recession risks in the eurozone rising, investors have plowed their cash into the relative safety of U.S. debt.
Japan added more than $11 billion to its stockpile – largely in bonds and notes – while China and Belgium, a proxy trader for Beijing, added a net $12 billion to its holdings. The figures came in a monthly Treasury Department report released Thursday afternoon.
The U.S. Treasury said in its semi-annual currency report published late Wednesday that China bought roughly $135 billion in foreign currencies in the year through August to keep the value of the yuan down as growth in the Asian powerhouse slowed.
There’s a good chance that September and October could continue to set new records for foreign holdings of U.S. debt, as indicated by the steady strengthening of the dollar since August and plummeting bond yields.
Amid increasing worries about slowing emerging-market growth slowing and recession risks in the eurozone rising, investors have plowed their cash into the relative safety of U.S. debt.
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