Wed Feb 16 2011 16:50
Linda Young - AHN News WriterWashington, D.C., United States (AHN) - China dumped United States Treasury securities in December, cutting its holdings for the second month in a row.
Treasury Department officials said Tuesday that China had reduced its holdings of U.S. Treasurys by $4 billion to $891.6 billion in December, after selling off $11.2 billion worth in November. Despite the sell-offs, China remains the largest holder of America's debt.
Moreover, overall holdings by foreign investors showed a net increase of U.S. Treasury notes and bondsof $54.64 billion, down only slightly from net buying of $61.72 billion in November.
The monthly data is used to analyze how easily the U.S. can borrow to fund its budget deficit andnational debt. When nations have trouble borrowing money it increases the interest rate that government must pay, which increases the cost of borrowing money.
Article © AHN Media Corp - All Rights Reserved
Wed Feb 16 2011 16:50
Linda Young - AHN News Writer
Washington, D.C., United States (AHN) - China dumped United States Treasury securities in December, cutting its holdings for the second month in a row.Treasury Department officials said Tuesday that China had reduced its holdings of U.S. Treasurys by $4 billion to $891.6 billion in December, after selling off $11.2 billion worth in November. Despite the sell-offs, China remains the largest holder of America's debt.
Moreover, overall holdings by foreign investors showed a net increase of U.S. Treasury notes and bondsof $54.64 billion, down only slightly from net buying of $61.72 billion in November.
The monthly data is used to analyze how easily the U.S. can borrow to fund its budget deficit andnational debt. When nations have trouble borrowing money it increases the interest rate that government must pay, which increases the cost of borrowing money.
Article © AHN Media Corp - All Rights Reserved
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