China Boosts Treasury Holdings as European Debt Contagion Sparks Investor Shift to U.S. Securities

China increased its purchases of U.S. Treasuries for the first time in six months in March as concerns about European debt contagion sparked an influx of foreign investments into dollar-denominated securities. China's holdings of U.S. Treasury securities rose by 2% to $895.2 billion, the first increase since last September, as the Asian juggernaut cemented its position as the top holder of U.S. government debt, according to the monthly Treasury International Capital report, known as TIC. The boost follows net sales of $11.5 billion in February. Japan, the second largest holder of Treasuries, also was a net buyer in March, lifting its portfolio holdings to $784.9 billion, from $768.5 billion in February. China's purchases were reflective of a deluge of foreign investment in U.S. debt securities as concerns about a European debt contagion and a rebounding U.S. economy sparked greater interest in purchasing U.S. corporate debt.