March 3 2010|02.30 PM UTC

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Savings and Credit, Interest Rate Round-up

Category: Credit, NewsTags: , , , ,

Below is a round-up of this week’s interest rates from the Federal Reserve.

This Week in Rates:

The latest data from the Treasury Department shows that China’s holdings of U.S. securities did not actually decline in December of 2009, as reported just weeks ago. A revision of these findings now shows that as of December’s end, China is still the primary foreign holder of U.S. debt totaling $894.8 billion. Japan ranked only second with $765.7 billion. These figures more accurately depict China’s decrease in holdings, from nearly a trillion in November of 2009. However, this decrease from $929 billion is not indicative of China’s disinterest in U.S. backed securities as they are still a major holder.

Derek Scissors, research fellow with The Heritage Foundation, said in a statement before the U.S.-China Economic and Security Review Commission (USCC) that, ”For Chinese purchases of American bonds, the U.S. government has done a poor job of providing public information in a timely fashion.” This, in turn, has resulted in the inaccuracy of actual figures reported by the Treasury, according to Scissors. Scissors believes China holds much more U.S. debt than the Treasury has taken into account, a figure he suggests should be around one trillion. Analysts are now exploring these claims made by Scissors at the USCC hearing held last week.

For more information on basic financial tools, see this article on the specifics of CDs, T-Bills, and interest rates.


**Please note that the discount rate above is calculated as an average of the posted rate for seven consecutive days, ending with the Wednesday of this current week. The actual discount rate is 0.75 percent.

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