Japan tops China as world's largest holder of US Treasuries: Data

Japanese 10,000 yen bank notes.
Japanese 10,000 yen bank notes. PHOTO: REUTERS

NEW YORK (REUTERS) - Japan became the largest holder of United States (US) Treasuries for the month of October, outpacing China for the first time in nearly two years, data from the US Treasury Department showed on Thursday.

Japan held US$1.131 trillion (S$1.612 trillion in US Treasuries, while China's holdings declined to US$1.115 trillion, a drop of about US$41 billion. China has been dipping into its reserves, selling Treasuries to support the yuan.

Data also showed foreigners bought US$9.4 billion in long-term US assets in October, after selling US$64.8 billion the previous month. Including shorter-dated securities, overseas investors purchased US$18.8 billion in October, after selling a massive US$154.4 billion in September.