Finance Minister Taro Aso of Japan said last Tuesday he wanted the United States to resolve its budget issues. This was according to a report from Reuters. The Japanese Finance Minister also said US should quickly reach an agreement to cease the debt ceiling standoff. Aso added that the quick resolution to cease the partial government shutdown would spare his country's foreign reserves and the global economy could also be spared from troubled.
Japan is among the biggest creditors of the United States. The Southeast Asian country holds USD1.14 trillion worth of US Treasuries. This made Japan the second biggest foreign owner of US Treasuries, according to a separate report from Bloomberg.
Should the budget issue of the United States remain unsettled, the absolute value of US bonds held by Japan could decline. This was according to Aso who told reporters after a cabinet meeting. Aso also said the Japan, being one of the biggest investors in US Treasuries, did not received any explanation from the US government regarding the fiscal deadlock.
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