WASHINGTON (MarketWatch) -- Net foreign purchases of U.S. long-term securities increased in May at the slowest pace since January, the Treasury Department said Friday. Total holdings of equities, notes and bonds increased a net $35.4 billion in May. This is down from $81.5 billion in April and a record $141.4 billion in March. Analysts had thought foreign investors had sought refuge in safe-haven U.S. assets in recent months as the European debt crisis intensified. Foreign investors were net sellers of U.S. equities in May for the first month since February 2009. International demand for Treasurys slowed to an increase of $33 billion in May from a gain of $110.3 billion in April. Foreigners sold U.S. corporate debt in May but continued to purchase agency debt. Including short-term securities and bank lending data, foreigners bought a net $17.5 billion compared with purchases of $13.0 billion a month earlier. China was a net seller of Treasuries in May after making net purchases in the past two months, according to the report.
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Posted - 07/16/2010 : 08:19:23
