WASHINGTON, Jan. 16 (Xinhua) -- Total foreign holdings of U.S. Treasury securities rose to a new high in November 2012, indicating rising international demand for American government debt, the U.S. Treasury Department said on Wednesday.
Overall foreign holdings of U.S. Treasury securities reached 5.5572 trillion U.S. dollars in November, up from a revised 5.5262 trillion dollars in October. It was the eleventh consecutive monthly increase.
According to the Treasury International capital report, China, the largest foreign holder of U.S. Treasury securities, boosted its holdings from a revised 1.1699 trillion dollars in October to 1.1701 trillion dollars in November.
Japan, the second largest foreign holder of U.S. government debt, increased its holdings from 1.1319 trillion dollars in October to 1.1328 trillion dollars in November.
The strong demand for U.S. government debt is key to funding its mounting deficit, which reached 1.089 trillion dollars for the 2012 fiscal year, marking the fourth consecutive year that the U.S. central government's budget deficit has topped 1 trillion dollars.