Foreign Holdings of U.S. Treasuries

SOURCE finance.yahoo.com
Foreign holdings of U.S. Treasuries reached a record high in February, with Japan and Belgium increasing their holdings significantly. China's holdings decreased, while the overall inflow of long- and short-term securities saw a significant increase.

Key Points

  • Foreign holdings of U.S. Treasuries hit a record high of $7.965 trillion in February.
  • Japan and Belgium significantly increased their holdings, while China's holdings decreased.
  • Overall net foreign acquisitions of long- and short-term securities showed a net inflow of $51.6 billion in February.

Pros

  • Increased foreign investment in U.S. Treasuries is a sign of confidence in the U.S. economy and financial system.

Cons

  • Declining holdings by China may indicate strained economic relations between China and the U.S.