AP Economics Writer
WASHINGTON (AP) - Foreign demand for U.S. Treasury securities rose to a record level in August, further evidence that most nations see U.S. debt as a safe investment.
The Treasury Department says total foreign holdings rose to a record $5.43 trillion in August. That's up 1.5 percent from the July level.
China, the largest foreign holder of U.S. debt, increased its holdings 0.4 percent to $1.15 trillion. And Japan increased its holdings 0.5 percent to $1.12 billion. Japan now trails China's holdings by just $32.1 billion.
Demand for U.S. debt has remained high even though the United States has run budget deficits in excess of $1 trillion for the past four years. Many foreign investors see U.S. debt as a safe investment with Europe in crisis and global growth slowing.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)