Foreign holdings of U.S. debt hit $5.46 trillion

• September was a 9th month of record demand for U.S. Treasuries
• China increased holdings to $1.16 trillion
• Japan boosted its holdings to $1.13 trillion

WASHINGTON (AP) — Foreign demand for U.S. Treasury securities rose to a record level in September for a ninth straight month.

The increase suggests overseas investors are confident in U.S. debt repayments despite a potential budget crisis.

The Treasury Department says total foreign holdings rose to $5.46 trillion in September, up 0.1% from August.

China, the largest holder of U.S. government debt, barely increased its holdings in September to $1.16 trillion. Japan, the second-largest holder, increased its holdings to $1.13 trillion. Brazil trimmed its holdings to $267 billion.

Investors continued to buy U.S. Treasurys, even as lawmakers and President Barack Obama remain at odds over whether to raise the U.S. borrowing limit as part of a broader budget deal.