If so how come we don't see interest rates jumped? What am I missing here? http://online.wsj.com/article/SB100...38452.html?mod=WSJ_hp_LEFTWhatsNewsCollection WASHINGTONâForeign investors cut their holdings of U.S. Treasurys by a record amount in June as the U.S. debt ceiling debate intensified, although China boosted its holdings for the third month in a row. Private foreign net purchases of long-term Treasury bonds and notes fell by $18.3 billion in June, following a $16.4 billion increase in May, according to the monthly Treasury International Capital report, known as TIC. The previous record drop was set in June 2000, when they fell by $16.5 billion. The extended political fight to raise the debt ceiling and the subsequent downgrade of U.S. credit ratings by Standard & Poor's has raised some concern abroad about the ability of Washington to pay its obligations. A Chinese government researcher last week urged the country to diversify its foreign-exchange holdings. China's holdings rose by $5.7 billion to $1.166 trillion in June, following net buying of $7.3 billion in May. However, analysts caution the data may not reflect the full spectrum of China's activity in the market. Treasury recently adjusted its estimate of China's holdings based on use of proxies in other countries. Japan, meanwhile, was a net seller of Treasurys. Japan remained the second-largest holder of Treasurys, but cut its holdings to $911 billion from $912.4 billion in May.