Japanese Finance Minister Taro Aso said it was up to the U.S. to resolve its debt impasse, not for Japan to fret over its investment in Treasuries, as a deadlock in Washington threatens to trigger a U.S. default.
Finance chiefs singled out the U.S.’s fiscal fight as the most pressing threat to the global economy as they urged lawmakers to find a resolution quickly and avoid a destabilizing default of the world’s benchmark debt.
Premier Li Keqiang said China is paying “great attention” to the U.S. debt-ceiling issue, adding his voice to official concern that wrangling over a borrowing limit risks a default in the world’s biggest economy.
China and Japan, which together hold more than $2.4 trillion in U.S. Treasuries, raised pressure on the U.S. to resolve a political impasse on its debt ceiling that threatens to destabilize global financial markets.
Risk appetites in American capital markets diminished amid the U.S. budget impasse, pushing Treasury one-month bill rates to the highest since 2008 and Internet stocks to the biggest losses in two years.