NEW YORK, Dec 15 (Reuters) - Japan became the largest holder of U.S. Treasuries for the month of October, outpacing China for the first time in nearly two years, data from the U.S. Treasury Department showed on Thursday.
Japan held $1.131 trillion in U.S. Treasuries, while China’s holdings declined to $1.115 trillion, a drop of about $41 billion. China has been dipping into its reserves, selling Treasuries to support the yuan.
Data also showed foreigners bought $9.4 billion in long-term U.S assets in October, after selling $64.8 billion the previous month. Including shorter-dated securities, overseas investors purchased $18.8 billion in October, after selling a massive $154.4 billion in September. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Sandra Maler)