Foreigners extended their holding in US Treasuries– September Report

According to the recent report of the U.S. Department of the Treasury, regarding the changes in domestic and foreigners’ holdings of U.S. Treasuries, the net foreign purchases of longer-term U.S. securities inclined by $9.5 billion during July; on the other hand, the holdings of longer-term U.S. securities by countries slightly slipped by $17.9 billion during July compared with June’s figures.

China’s holding of U.S. Treasuries Securities rose for the fourth consecutive month; during July 2011 it inclined by 0.69% or $8.0 billion to a record $1,173.5 billion, slightly  above the $1,115 billion China had held back in July 2010. There were also rises in July compared with June’s holding to other countries including Japan (by $3.8 billion); on the other hand Caribbean banks’ holding of U.S. Treasuries Securities fell by $17.2 billion to $124.5 billion. The total holdings by countries of U.S. Treasuries Securities fell by $17.9 billion.

During July, the total holdings by foreign residents in longer-term U.S. Treasuries notes fell by $24.6 billion. This comes after a decline in foreign residents holdings’ during June.

At the same time, the total holdings of long term U.S. Treasuries securities by U.S. residents also grew by $15.1 billion. As a result the net foreign purchases of long-term U.S. Treasuries securities reached $9.5 billion.

These findings suggest there was a clear increase in the demand for holding L-T U.S. Treasuries Securities.

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