WASHINGTON — Foreign demand for U.S. Treasury securities rose to a record level in October, a sign that overseas investors are confident in U.S. debt despite a potential budget crisis.
The Treasury Department says total foreign holdings rose to $5.48 trillion in October, up 0.1 percent from September.
China, the largest holder of U.S. government debt, increased its holdings slightly to $1.16 trillion. Japan, the second-largest holder, boosted its holdings by a smaller amount to $1.13 trillion. Brazil, the country with the third-largest holdings, increased to $255.2 billion.
Investors are continuing to seek the perceived safety of U.S. Treasurys, even as lawmakers and President Barack Obama remain at odds over whether to raise the U.S. borrowing limit as part of a broader budget deal.