The US's biggest foreign lender China has boosted its Treasury bond holdings to near record levels of $1.3 trillion in October. This after the Fed calmed financial markets by saying in September it would continue its monthly $85 billion bond purchases.
The total value of US government bonds grew by $10.7 billion, or by 0.8 percent Treasury data shows. This compares to the July 2011 figure when it reached a record $1.314 trillion.
The pace of Chinese bond buying has not stopped, and that increase in buying is expected to be more than the record 30 percent rise seen in 2010.