Nation boosts holdings of US Treasuries

China remained the largest holder of US debt in January, increasing its holdings for the first time in two months even as overall foreign demand for US Treasury securities weakened, according to new data from the Treasury Department.

Treasuries saw an outflow of $571 million at the start of the year, from an inflow of $17.9 billion in December. Foreign official institutions sold $16.7 billion in January and $11.9 billion in the final month of the year, data showed.

Analysts said they saw no significance in China's move to add $3.5 billion in Treasuries - less than 1 percent - for a total $1.274 trillion, despite weaker overall foreign buying. It was the first increase in holdings of US debt by the world's second-largest economy since it bought $12.2 billion of Treasuries in November.