China cuts holdings of US Treasurys for 5th month

China, the biggest buyer of U.S. securities, trimmed its holding of US debt for the 5th straight month. However, both Japan and Britain stepped up their securities holding of US debt.

Martin Crutsinger, AP Economics Writer
On Monday May 16, 2011, 10:45 am EDT
Yahoo! Finance

WASHINGTON (AP) -- China, the biggest buyer of U.S. securities, trimmed its holdings for a fifth straight month.

The Treasury Department said Monday that China cut its holdings by $9.2 billion to $1.14 trillion.

Japan, the second-largest foreign holder, boosted its holdings by $17.6 billion to $907.9 billion. There had been concerns that the March 11 earthquake and tsunami would lead Japan to scale back its purchases so it could use the money for reconstruction.

Britain, the third-largest buyer, increased its holdings by 10 percent to $325.2 billion in March.

Total foreign holdings increased by $4.9 billion to $4.48 trillion.

Treasury Secretary Timothy Geithner said the government will reach its $14.3 trillion borrowing limit on Monday.

The U.S. government would default on its debt if it did not have the resources to pay bondholders the interest or principal payments as they come due. Treasury securities are considered the safest investment in the world because the U.S. government has never defaulted.

Treasury officials have said they will be able to continue regular debt auctions until August 2. That's intended to reassure domestic and foreign investors about the availabilty of Treasury securities.

Geithner on Monday said he will halt investments in two big government pension plans immediately to allow the government to continue borrowing money for the next few months. The money that the two pension funds will lose would be replaced if Congress votes to raise the borrowing limit.

Republicans have held back supporting an increase in the borrowing limit. They first want Congress agree to more spending cuts.

To see original article CLICK HERE

Follow Us

Share Page

Login

Get access to the latest trading information, tools to help your investing, and much more!

Login   Sign Up

Search

Weekly Charts

Current Spot Prices

Gold$1198.76
Silver$16.04
Platinum$1206.50

Special Offers

 
 
© 2012 Swiss America Trading Corp. All Rights Reserved.   |   Privacy Policy   |   Site Map   |   Contact Us   |   Mobile Version
SWISS AMERICA and Logo are trademarks of Swiss America Trading Corp.
Where did you hear about us?
Roger HedgecockRay Lucia
Pat BooneMichael Savage
Bill CunninghamOther
iHeart Radio/Rush Limbaugh
×