Foreign holdings of US debt rise

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 government’s borrowing limit, but no deal was reached on a plan to avert automatic spending cuts from going into effect March 1.