Newsmax TV & Webwww.newsmax.comFREE - In Google Play
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
Tags: US | Foreign Holdings

Foreign Ownership of US Debt Falls for 1st Time in 6 Months

Wednesday, 15 June 2016 05:02 PM EDT

WASHINGTON (AP) — Foreign holdings of U.S. Treasury securities slipped for the first time in six months, led by declines in Ireland and the Cayman Islands, the third and fourth largest owners of U.S. debt.

The Treasury Department says total foreign holdings declined 0.7 percent to $6.24 trillion.

The Cayman Islands, a Caribbean banking center, reduced its holdings 2.5 percent to $258.5 billion, while Ireland cut back 2.4 percent to $257.9 billion.

China, the largest overseas owner of U.S. debt, also reduced its holdings by a slight 0.1 percent, to $1.24 trillion. Japan, the second largest, raised its ownership 0.5 percent to $1.14 trillion.

The national debt is more than $19 trillion and projected to grow. That means the United States will need to see continued strong foreign demand for Treasury debt.

Of that amount, $13.7 trillion is publicly traded on financial markets and $5.3 trillion is debt that the government owes itself in the form of holdings in trust funds such as the Social Security trust fund.

Foreigners own about two-fifths of the debt that is publicly traded. Of that amount, $4.1 trillion is held by foreign governments, primarily central banks, who see Treasury securities as one of the world's safest investments.

© Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

US,Foreign Holdings
Wednesday, 15 June 2016 05:02 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved
© Newsmax Media, Inc.
All Rights Reserved