Japan Becomes The Largest Holder Of US Treasury Bonds.

According to data released by the US Treasury, since 2010, Japan has purchased a total of US $55 billion 300 million of US Treasury bonds, with an increase of 7.2%. The total amount of treasury bonds currently held by Japan has reached US $821 billion.

Japan thus surpassed China as the largest holder of US Treasury bonds for the first time since August 2008.

Japan is the biggest buyer of US Treasury bonds.

Data show that China sold a lot of US Treasury bonds in July 2010 while Japan was buying heavily.

Since 2010, 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 in New York.

He said: "when the financial crisis led to the gloomy economic outlook of the world, the United States has become the world.

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, exceeding the US $614 billion 800 million in 2009.

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.