China, the largest foreign creditor to the U.S., increased its ownership of Treasuries in October to almost the record level reached in July 2011 after the Federal Reserve unexpectedly opted not to slow bond buying.
Holdings rose $10.7 billion, or 0.8 percent, to $1.304 trillion, according to Treasury Department data released yesterday. China held a record $1.314 trillion in July 2011. Total foreign holdings of Treasuries rose $600 million, or 0.01 percent, in October to $5.65 trillion.
Treasuries held in custody for foreign central banks by the Fed have climbed 1.9 percent, or $54.8 billion, in the eight weeks since Oct. 16, central bank data show.
Japan, the second largest foreign lender to the U.S., reduced its holdings of U.S. government debt for the first time since June by $3.7 billion, or 0.3 percent, to $1.17 trillion.