Foreign Holdings of US Debt Surge to Record High of $8.5 Trillion

Foreign holdings of U.S. Treasury securities surged to an all-time high in August, data from the Treasury Department confirmed on Oct. 17.
Holdings of U.S. Treasurys increased to $8.5 trillion, up from $8.3 trillion in July and by nearly 12 percent from a year ago.
Japan remained the top holder of U.S. government debt, with Tokyo adding about $14 billion to $1.12 trillion.
China, the second largest holder of Treasurys, shed nearly $2 billion from its investment portfolio, lowering its stake to $774.6 billion. Beijing has engaged in a long-term crusade to decrease its exposure to U.S. Treasury debt, which has declined by approximately 4 percent since last year….