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.

Fed officials surprised traders and roiled markets across the globe on Sept. 18 by maintaining $85 billion in monthly purchases. Policy makers won't start curtailing quantitative easing this week either, according to 66 percent of economists surveyed Dec. 6 by Bloomberg. China's demand for Treasuries rose as foreign currency reserves jumped 4.7 percent in the July-September period and the People's Bank of China sought to keep the yuan within its managed trading range.