Foreign demand for U.S. Treasury securities rose to a record level in January, showing that international investors remain confident in U.S. debt despite on-going budget disputes in Washington, the government said Friday.
According to the Treasury Department, foreign holdings of U.S. Treasury securities rose in January for a thirteenth straight month to a record $5.62 trillion, up 0.8 percent from December.
China, the top foreign holder, increased its holdings 3.6 percent to $1.26 trillion. Japan, the second largest holder, boosted its investment 0.4 percent to $1.12 trillion.
Demand rose as Congress and President Barack Obama continued to dispute various budget issues. Congress did agree to temporarily lift the governmentâ€™s borrowing limit, but no deal was reached on a plan to avert automatic spending cuts from going into effect March 1.