Foreign holdings of US Treasury debt increase
Source: AP-EXCITE
By MARTIN CRUTSINGER
WASHINGTON (AP) Foreign buyers of U.S. Treasury securities increased their holdings in April to another record high even though China cut back on its holdings for a third straight month.
The Treasury Department says total foreign holdings rose 0.2 percent to a record $5.96 trillion, up from $5.95 trillion in March. It marked the ninth consecutive monthly increase.
China, the largest foreign buyer of U.S. Treasury debt, reduced its holdings for a third month, cutting them by 0.7 percent to $1.26 trillion. Japan, the second largest buyer, boosted its holdings 0.8 percent to $1.21 trillion.
Foreign demand for U.S. Treasury debt is expected to remain strong this year, helped by more borrowing certainty given the congressional agreement to suspend the debt limit until March 2015.
Read more: http://apnews.excite.com/article/20140616/us--foreign_holdings-b012932393.html
FILE - In this June 6, 2014 file photo, a man holding an umbrella walks past an electronic stock indicator of a securities firm, in Tokyo. The Treasury Department releases foreign holdings data for April on Monday, June 16, 2014. (AP Photo/Eugene Hoshiko, File)
amandabeech
(9,893 posts)Whenever problems arise that affect areas of the world that figure prominently in the world economy, foreign holdings of treasuries ususally rise.
This spring, the Ukrainian/Russian conflict started, and now there is a significant problem affecting one of the top oil exporters in the Persian Gulf.
Although right now it does not look like WWIII will result from either of these problems, enough worry exists for folks to want those treasuries.
jakeXT
(10,575 posts)fasttense
(17,301 posts)Every cent borrowed is another tax cent avoided by a 1 percenter.
There is absolutely no need to be borrowing. If Corporations and the uber rich paid the same share of taxes as the middle class does, there would be no need to borrow anything. We have debt because the uber rich don't want to pay taxes. It's as simple as that.