* Who Holds the Debt? The majority of the U.S. national debt is held domestically:

* About 42% is held by U.S. private investors and entities (savings bonds, mutual funds, pension funds).

* Around 20% is held by intragovernmental U.S. agencies and trusts.

* Roughly 13% is held by the Federal Reserve.

* Foreign investors hold about a quarter of the debt, with Japan and the United Kingdom being significant holders.