China in September becomes largest holder of US treasuries

China in September became the largest foreign holder of US treasuries ahead of Japan, the US Treasury Department reported in figures released Tuesday.

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

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

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 dollars.