Summary Box: Foreign buyers still like US debt

AP News
Posted: Jul 18, 2011 4:54 PM
Summary Box: Foreign buyers still like US debt

U.S. DEBT STILL ATTRACTIVE: An impasse in Washington over an increase in the borrowing limit hasn't cooled the market for U.S. Treasurys. Foreign investors increased their holdings in May _ the same month the U.S. reached its $14.3 trillion borrowing limit.

WHO'S BUYING: China, the biggest buyer of U.S. Treasury debt, increased its holdings in May for the second straight month, after five months of declines. China's holdings increased to $1.16 trillion. Japan and the United Kingdom also boosted stockpiles.

CONSIDERED SAFE INVESTMENT: Investors believe a default will be avoided. Also, U.S. debt is still considered safer than the debt of other countries. And there is lots of it, so it is easily traded.