Foreign holdings of US Treasury debt drop in April

Martin Crutsinger, AP Economics Writer
June 14, 2013
Foreign holdings of US Treasury debt drop in April

In this Monday, April 22, 2013, photo, a man is reflected on the electronic board of a securities firm in Tokyo. Foreign demand for U.S. Treasury securities fell in April for the first time in more than a year, as China and Japan both trimmed their holdings. (AP Photo/Koji Sasahara)

WASHINGTON (AP) -- Foreign demand for U.S. Treasury securities fell in April for the first time in more than a year, as China and Japan both trimmed their holdings.

The Treasury Department said Friday that total foreign holdings dropped 1.2 percent in April from March to $5.67 trillion.

China, the largest foreign buyer of Treasury debt, reduced its holdings 0.4 percent to $1.26 trillion. Japan, the second-largest buyer, cut its holdings 1.2 percent to $1.1 trillion.

Even with the reductions, Treasury debt held by foreigners is up 8.6 percent from a year ago. The gain shows overseas investors are still buying U.S. debt, despite sharp debates in Congress over reducing federal deficits.