Bloomberg News

Japan Will Be Prudent in Overseeing U.S. Bonds, Maehara Says

October 11, 2011

(Updates with Maehara comments in second paragraph.)

Oct. 11 (Bloomberg) -- Japan will be prudent and monitor global trends in overseeing its U.S. bond holdings, said Seiji Maehara, policy chief for the ruling Democratic Party of Japan.

Japan needs to take balanced action as the world economy’s interdependence is growing, Maehara told reporters at the World Knowledge Forum held in Seoul today.

China and Japan are big holders of U.S. debt and Japan will be prudent in its investment decisions, he said in Japanese translated into Korean. China held $1.174 trillion of U.S. Treasuries and Japan owned $915 billion as of July, according to the U.S. Treasury Department.

Maehara said he expects the U.S. will also cautiously consider how to recover confidence in the dollar as the world’s reserve currency given the severe difficulties facing the U.S. economy and stock market.

--Editors: Ken McCallum, John Brinsley

To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net


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