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.
For more on this subject:
- A decline in US Treasuries holdings – August report
- China Japan and UK’s holding of US Treasuries rose in May