WASHINGTON - Total foreign holdings of US long-term securities in November 2010 reached $4,346.8 billion, up $39.5 billion, or 0.9 percent from the previous month, the US Treasury Department reported Tuesday.

The figures reflect demand for US Treasury obligations and other assets, including stocks and government agency debt, a key to funding the massive US balance of payments deficit with the rest of the world.

According to the Treasury International Capital (TIC) report, China, the largest holder of US Treasury securities, trimmed its holdings from $906.8 billion in October to $895.6 billion in November.

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However, Japan, the second largest foreign holder of US government debt, raised its holdings by $2.2 billion to $877.2 billion.

Britain, the third largest holder, also boosted its holdings to $511.8 billion in November from $478.5 billion in October.

The debt figures are closely watched at a time when more and more Americans believe that the US soaring debt is unsustainable.

The federal debt surpassed $14 trillion at the end of 2010 and the federal government will be on the edge of bankruptcy if Congress does not increase the debt ceiling, which is $14.3 trillion.

The US federal budget deficit reached $1.29 trillion in the fiscal year 2010 ended Sept 30. It recorded a historic high of $1.42 trillion in fiscal year 2009, when the economy was hit deeply by the financial crisis.