Japan Becomes The Largest Holder Of US Treasury Bonds.

Data show that China has been selling U.S. Treasury bonds since the beginning of this year, but China remained the largest holder of treasury bonds until the end of August.

China's massive sell-off did not reduce other countries' enthusiasm for US Treasury bonds. Data from the US Treasury Department show that the total amount of treasury bonds purchased by foreign governments this year is as high as 374 billion dollars, accounting for 10% of the total Treasury bonds issued by the US Treasury this year.

Japan is the biggest buyer of US Treasury bonds.

Data show that China sold a lot of US Treasury bonds in July, while Japan was buying heavily.

This year, China has reduced its holdings of US Treasury bonds by US $48 billion 100 million, with a reduction of 5.4%.

The enthusiasm of foreign governments and overseas investors to buy US Treasury bonds has led to continued decline in US Treasury yields.

Bank of America data show that the average yield of US Treasury bonds has dropped from 5.21% in 2007 to 1.31% at the time of the outbreak of the financial crisis.

"These data indicate that investors are still confident in buying US Treasury bonds," said Carl Lantz, an analyst at Credit Suisse Group AG in New York.

"The United States has become a haven for global investors in the wake of the financial crisis," he said.

Carl Lantz said that according to current trends, the total amount of treasury bonds purchased by foreign governments and overseas investors by the end of the year could reach $641 billion, up from last year's $614 billion 800 million.

He said that although the yield of US Treasury bonds is low, it is very safe and mobile.

When needed, investors can conveniently convert their holdings of treasury bonds into cash.

He added that the more gloomy the prospects for world economic recovery are, the greater the demand for US Treasuries will be.