Last week, Aso expressed concern that debt ceiling could affect the global economy and decrease Japans huge investments in US Treasury bonds
, urging Washington to swiftly resolve its current fiscal crisis.
During the last debt-ceiling crisis, S and P downgraded the US government credit rating from A to +, which impaired investor confidence in US Treasury bonds
and Kali warned that current crisis could cause similar reaction.
Contributing to last year's contraction was a rally in US Treasury bonds
, which benefited from safe-haven flows as Europe's debt crisis simmered, as well as central bank buying both at home and abroad.
Japan had been the largest holder of US Treasury bonds
until September 2008, when it was overtaken by China.
81 per cent of its foreign exchange ( forex) reserves in US treasury bonds
, according to data released recently by the US Department of Treasury.
Chinese mainland's purchase of US Treasury bonds
fell for the first time in 11 months to $763.
It was rumoured that the US Federal Reserve's decision last week to buy USD300bn of US Treasury bonds
would eventually stoke inflation, leading to a bear market for bonds.
The US Treasury and the New York Federal Reserve would "allow" the Saudi central bank, SAMA, to buy US Treasury bonds
with Saudi petrodollars.
The Venezuelan risk index has increased steadily, widening the spread between US Treasury bonds
and the rates Venezuela would have to pay on its debt.
Police claimed last night they have smashed a City of London fraud ring involving US Treasury bonds
worth pounds 470million.
TOKYO, Oct 8 (KUNA) -- Japanese Finance Minister Taro Aso said on Tuesday he expects the US to swiftly resolve its current fiscal crisis, expressing concern that debt ceiling could decrease Japan's huge investments in US Treasury bonds