Foreign holdings of U.S. Treasuries rises despite government shutdown

140px-US-DeptOfTheTreasury-Seal.svgData released by the U.S. Treasury on Monday showed foreign holdings of U.S. Treasuries rose to $5.65 trillion in October, despite budget disagreements that led to a 16-day government shutdown.

Total foreign holdings of U.S. Treasuries rose by $600 million, or 0.01 percent, in October, following a one percent increase in September. Foreign holdings of U.S. Treasuries declined between April and July.

Net foreign acquisitions of long-term and short-term U.S. securities, as well as banking flows, totaled $194.9 billion. Private inflows accounted for $185.1 billion, and net foreign official inflows accounted for $9.8 billion.

Net purchases of long-term securities rose to $54.7 billion in October, and net purchases by private foreign investors totaled $59.4 billion. Net sales by foreign official institutions totaled $4.7 billion.

China increased its holdings of U.S. Treasury securities by $10.7 billion—nearly one percent—to reach $1.3 trillion in November, up slightly from $1.29 trillion in October. Japan, the second largest purchaser of U.S. securities, reduced its holdings from approximately $1.18 trillion to $1.17 trillion.

Foreign residents’ holdings of U.S. Treasury bills fell by $15.3 billion, and resident holdings of all dollar-denominated short-term U.S. securities rose by $11.6 billion. Bank’s own net-dollar denominated liabilities to foreign residents rose by $159.5 billion.

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