Foreign Demand for Long-Term U.S. Debt Fell Sharply in May
July 16th, 2009Via: AP:
Foreign demand for long-term U.S. financial assets dropped by the largest amount in four months in May, as Japan and Russia trimmed their holdings of Treasury securities.
The Treasury Department said Thursday that foreigners actually sold $19.8 billion more long-term U.S. securities than they purchased in May. That compared with net purchases of $11.5 billion in April.
China, the largest foreign holder of U.S. Treasury securities, bucked that trend. Its holdings rose to $801.5 billion, an increase of 5 percent from $763.5 billion in April.
…
Foreigners last sold more long-term U.S. securities than they purchased, $36.8 billion worth, in January.
Japan, the second largest foreign owner of Treasury securities, trimmed its holdings 1.3 percent to $677.2 billion in May, from $685.9 billion in April.
Russia cut holdings even more sharply, reducing them 9.1 percent to $124.5 billion in May from April.
Oil exporting countries, another large holder of Treasury securities, boosted their holdings by 1.8 percent to $192.9 billion.
Treasury Secretary Timothy Geithner traveled to Saudi Arabia and the United Arab Emirates this week to assure those governments that the administration is committed to getting its soaring budget deficits under control once the current recession and financial crisis have been contained. Geithner delivered a similar message to the Chinese in a trip to Beijing a month ago. [Where everyone in the room laughed at him.]
greatest pyramid scheme in the history of rip-offs.
there must be some tactical reason for China to increase its holdings. it seems crazy but i suppose they have some reason to keep things going for a while yet.
investment committee meetings at the State Administration of Foreign Exchange must be a barrel of laughs.