July 2011 U.S. Treasury Statement and Debt Overview

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Outlays of $288.4 billion and receipts of $159.1 billion added another $129.4 billion to the federal budget deficit in July. The U.S. federal debt held by the public stood at $14.342 trillion at the end of July.
 

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Foreign investors held $4.499 trillion, or a little less than one-third of the U.S. public debt at the end of June. China remained the largest foreign creditor ($1.166 trillion). China was the biggest buyer in absolute terms ($5.7 billion), but the United Kingdom was the largest in percentage terms (0.8 percent). Holdings by the “other” (aggregated) category have been trending lower since last November, dropping $103.0 billion over that time period.
 

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The Federal Reserve put more distance between itself and both China and Japan during June in terms of U.S. Treasury holdings. Moreover, were the Fed to maintain its June rate of Treasury purchases for a year, it would nearly double its current holdings. China added modest amounts to its holdings while Japan was a net seller.

More recent data shows the Fed has slowed purchases of U.S. Treasury debt since June, but still held over $1.6 trillion as of the end of July.
 

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Flows into the United States for all types of investments were overwhelmed by outflows in June, as evidenced by the sharp drop-off in three-month-average net inflows shown by the Treasury International Capital (TIC) accounting system. Net flows were -$29.5 billion in June.
 

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Short-term U.S. securities (e.g., T-bills) continued to decline in June. With the exception of October, foreign investors have been net sellers of short-term U.S. debt during every month since September 2010.
 

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Net inflows into long-term public debt declined rather quite noticeably (to -$4.741 billion) in June. Purchases of private equities also fell, to -$6.74 billion.