WASHINGTON — China, the largest holder of U.S. Treasury debt, increased its holdings for a second straight month in August after two months of declines.
China’s holdings of Treasury securities rose to $868.4 billion in August, the Treasury Department reported Monday. That’s up 2.6 percent and followed a gain of 0.4 percent in July. China’s holdings had fallen 2.8 percent in June and 3.6 percent in May.
The debt figures are being closely watched at a time when the U.S. government is running $1 trillion-plus annual deficits. A drop in foreign demand could lead to higher U.S. interest rates.
Other owners of large stakes in U.S. Treasurys also increased their holdings in August. Japan, the second- largest foreign holder, boosted its stake by 1.9 percent to $836.6 billion. Britain, ranked No. 3, had a 19.8 percent jump in its holdings to $226.6 billion.
Total holdings of Treasury securities by all countries rose to $2.28 trillion, up 1.4 percent from July.
