Foreign holdings of US Treasury securities fell in August
WASHINGTON — Foreign holdings of U.S. Treasury securities fell again in August as China, the biggest foreign owner of Treasury debt, trimmed its holdings for the third straight month.
The Treasury Department reported Tuesday that total foreign holdings dropped 0.8 per cent to $6.20 trillion in August following a 0.5 per cent decline in July.
China reduced its holdings 2.7 per cent to $1.19 trillion after declines of 1.8 per cent in July and 0.3 per cent in June. Japan, the second largest foreign holder of Treasury debt, reduced its holdings by 0.9 per cent to $1.14 trillion in August.
The Congressional Budget Office forecasts the national debt, now at $19.7 trillion, will increase by $8.6 trillion over the next decade, underscoring America’s need to maintain high foreign demand for the rising levels of Treasury debt.