KTC Capital Management Reports Higher US Debt Levels

Online, January 19, 2011 (Newswire.com) - Foreign investors built their stake by purchasing $150 billion of long-term Treasuries in October and November alone according to the US Department of the Treasury.

Treasuries have always been considered low risk as they are backed by the U.S. government. The latest data indicate that their safe-haven standing has not deteriorated among the international investing community as of yet, despite the country's towering budget deficit.

While foreigners increased the U.S. debt holdings, U.S. nationals slowed their spending on foreign bonds. Americans bought $36 billion long-term foreign securities in the same period. That created an offset of $114 billion for the two months, a larger differential than has been the norm. Analysts explain this anomaly is due to the larger European debt crisis making the US a lesser of evils when investors look to the bond market.

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