China’s US debt holdings at $1.16 trillion

Tuesday, March 1, 2011

WASHINGTON - China’s holdings of long-term US Treasury securities totalled $1.16 trillion at the end of December 2010, a media report said Tuesday.

The US Treasury Department has revealed the figure in its annual report released Monday, China Daily reported.

China, the largest holder of US Treasury securities, reduced its holdings by $4 billion in December from $1.164 trillion in November.

The Treasury said that China trimmed its holdings from $895.6 billion in November to $891.6 billion in December.

Japan, the second largest foreign holder of US government debt, raised its holdings to $882.3 billion in December.

Britain, the third largest holder of US debt, boosted its holdings to $272.1 billion in December from $242.5 billion in November.

Total foreign holdings of US long-term securities in December 2010 reached $4.44 trillion, up from $4.41 trillion in November.

The US federal budget deficit reached $1.29 trillion in the 2010 fiscal year ending Sep 30. It recorded a historic high of $1.42 trillion in the 2009 fiscal year when the economy was hit hard by the financial crisis.

According to President Barack Obama’s fiscal 2012 budget, which was sent to Congress earlier this month, the US federal deficit in 2011 is expected to hit a new record of $1.65 trillion.

Filed under: Economy

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