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Banking, finance, and taxes

China Returns As Net U.S. Treasury Buyer

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By Jon C. Ogg Updated Published
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A new report from the U.S. Treasury called the Treasury International Capital Report is showing that, at least for now, China (and other nations in total) remains a net buyer of U.S. Treasury debt.  In the month of April, foreigners were net buyers of longer-term U.S. securities.

Treasury debt held by China rose by $1.5 billion to $1.146 trillion. This may not sound like much, but it is important because China was a net seller of Treasury debt to the tune of about $11.2 billion.  This is no ‘back to normal’ yet for China but it is still showing that the U.S. may be the least ugly debtor in a world of deadbeats.

Japan reduced its holdings again but remains very high with over $1.06 trillion in total Treasury holdings.

One key issue is that foreign investors as a total purchased a net $37.26 billion in April, and that is before the global concerns really started to grow in May.  March’s net foreign buying of Treasuries was $20.09 billion.

The United States gets to keep financing its deficits with foreign capital.  For now.

JON C. OGG

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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