Foreign demand for US Treasury securities fell by a record amount in December as China sold $34.2bn in US Treasury securities over  the month, the US Treasury said on Tuesday. China’s move leaves Japan as the biggest holder of US government debt with $768.8bn, and suggests that the US may have to pay more to service its debt interest. It comes as the White House grapples with how to cut the US deficit, projected to be $1,560bn in 2010, or 10.6% of GDP.

This entry was posted by Gwen Robinson on Wednesday, February 17th, 2010 at 5:04 and is featured in The 6am Cut London (17 Feb 2010) . Tagged with Treasuries. Edit this entry.