FOREIGN demand for US Treasury securities rose to a record level in February, indicating that international investors remain confident in US debt despite budget wrangling in Washington.

The Treasury Department said yesterday that foreign holdings of US Treasury debt rose 0.3 percent in February from January to a record US$5.66 trillion. It was the 14th straight monthly rise.

China, the top foreign owner of Treasury debt, increased its holdings 0.7 percent to US$1.22 trillion. Japan, the second-larger holder, trimmed its holdings 0.6 percent to US$1.1 trillion.

Overall demand kept rising despite sharp disagreements between US Congress and President Barack Obama over tax and spending issues.

Still, Congress approved a measure to temporarily suspend the borrowing limit until May 19. That has allowed the government to take on more debt while the debate continues.