China becomes largest holder of US treasuries in Sept

China in September became the largest foreign holder of US treasuries ahead of Japan, the US Treasury department reported.

China held $585 billion worth of treasuries, while Japan held $573.2 billion, according to Treasury figures released yesterday.

In August, Japan held $586 billion worth of treasuries, while China owned $541.4 billion.

The United States, with the world's largest economy, has long relied on foreign purchases of government-issued bonds to finance its huge debt.

The third largest foreign holder is Britain, with $338.4 billion.