China ups US debt holdings to $1.18t

Foreign holdings of US Treasury debt hit a record high of $5.1 trillion in February, with China remaining the nation's largest foreign creditor, according to data the US Treasury Department released Monday.

China's holdings increased for the second straight month, rising by $12.7 billion in January to $1.18 trillion.

From July to December of 2011, China reduced its position in US Treasury debt, with its holdings down $163 billion during the period.

Considered one of the safest investments, demand for US government debt has seen a rising as the Europe's credit woes got worse.