Foreign holdings of U.S. Treasury securities rise to $5.46 trillion

The Treasury Department announced Friday that foreign holdings of United States Treasury securities rose to $5.46 trillion in September, up 0.1 percent from the month prior.  Foreign demand rose for the ninth straight month.

Analysts are concluding that foreign investors are confident in the U.S., even though it is going through fiscal cliff talks, a $16 trillion national debt, a trillion-dollar budget deficit, $121 trillion in unfunded liabilities and expenditures and a devaluing dollar.

The real story of this latest news is that China, the largest holder of U.S. government debt, hardly increased its holdings, which presently stands at $1.16 trillion.  Meanwhile, Japan, the second-largest foreign holder, increased its investment to $1.13 trillion and Brazil decreased its holdings to $267 billion.

The full list of foreign holdings from the Treasury Department can be found here.

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