Foreign demand for U.S. Treasury securities rose to a record level in January, providing evidence that international investors remain confident in U.S. debt despite ongoing budget battles in Washington, D.C. The Treasury Department reports today that foreign holdings of U.S. Treasury securities rose in January for a 13th straight month to a record $5.62 trillion, up 0.8% from December. China, the top foreign holder, increased its holdings 3.6% to $1.26 trillion. Japan, holder of the second-highest amount, boosted its investment 0.4% to $1.12 trillion. Demand continued to rise as Congress and President Barack Obama kept wrangling over various budget issues. Congress did agree to temporarily lift the government’s borrowing limit, but no deal was reached on a plan to avert automatic spending cuts from going into effect on March 1.
Foreign holdings of U.S. debt up to $5.62 trillion
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