40 percent of foreign-held U.S. debt is now owned by Asian countries

Just over 40 percent of foreign-held U.S. debt is now owned by Asian countries, the Treasury Department announced Monday.

China owns the largest portion, $1.16 trillion, ahead of Japan’s $1.13 trillion of U.S. Treasury securities. Total debt held by foreign countries reached the record high of $5.48 trillion.

Foreign countries continuing to buy U.S. treasury debt is a perceived sign of confidence in the securities market, despite the sputtering negotiations for the end of the year budget and fiscal compromise known as the fiscal cliff. U.S. treasury securities are considered to be among the safest places for investors to put money in the world.