India’s US govt debt holding dips to $58.9 billion

PTI Washington | Updated on December 18, 2012

India’s holding of US Government debt securities has declined for the second consecutive month, even as many other countries including China, Japan, Brazil and Russia hiked their exposure to American treasury bonds.

According to the latest data released by the US Department of Treasury, India’s holding of treasury securities stood at $58.9 billion (over Rs 3,20,000 crore) at the end of October 2012 — marking the second straight month of decline after an uptrend for seven continuous months.

However, the holdings of countries such as China, Japan, Brazil, Switzerland, Russia, France and Canada rose during October.

At the end of the month, India was the 18th largest holder of US treasury bonds, while China was the largest foreign owner of these securities followed by Japan, Brazil, Taiwan, Switzerland, Russia, Luxembourg, Hong Kong, Belgium and the UK in the top ten.

Others with higher holdings than India included Singapore, Ireland, Norway, France, Canada, Germany and Mexico, US Treasury data showed.

India’s holding of treasury securities stood at $60.6 billion at the end of August and fell to $59.7 billion in September.

However, India’s holding of the US Government debt securities is still considerably higher than the year-ago level of $40.1 billion in October 2011.

Indian holdings of the treasury securities mostly comprise bonds held through the Reserve Bank.

China held $1.16 trillion worth of treasury securities at the end of October, while Japan’s was $1.13 trillion.

The countries whose holdings declined during the month include Taiwan, Luxembourg, Singapore, Ireland and the UK.

Overall, the foreign entities increased their holdings of long-term US securities in October with a net purchase of $28.4 billion. Of this, the net purchases by private foreign investors were $22.3 billion, and net purchases by foreign official institutions were $6.2 billion.

At the same time, US residents increased their holdings of long-term foreign securities, with net purchases of $27.1 billion, the Treasury said.

The overall foreign holding of the US treasury securities rose by about $6 billion to $5.48 trillion in October.

Published on December 18, 2012

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