Foreign holdings of US Treasury debt hits record

Foreign buyers of US Treasury securities increased their holdings in March to a record high. The Treasury Department says total foreign holdings rose 1 per cent to $5.95 trillion from $5.89 trillion in February.  China, the largest foreign buyer of Treasury debt, reduced its holdings by less than 0.01 per cent to $1.27 trillion. Japan, the second-largest buyer, cut its holdings 0.8 per cent to $1.2 trillion. Belgium, Luxembourg and Caribbean countries involved in banking all increased their holdings. Meanwhile, Russia shed almost 21 per cent of its holdings in March following international tensions over its move to annex part of Ukraine. Foreign demand for US Treasury securities is expected to remain strong this year, aided by more borrowing certainty with a congressional agreement to suspend the debt limit until March 2015, according to a news agency.