Global demand for US assets up on debt woes
Source: Bloomberg News |
May 16, 2012, Wednesday
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Print Edition
Print Edition
INTERNATIONAL demand for US financial assets rose in March as investors continued to seek safety from the debt crisis in Europe.
Net buying of long-term equities, notes and bonds totaled US$36.2 billion during the month, compared with net purchases of US$10.1 billion in February, the US Treasury Department said yesterday in Washington.
"The continued buoyancy in foreign demand for US Treasuries is consistent with the preeminent safe-haven appeal of these securities to global investors," said Millan Mulraine, a senior US strategist at TD Securities in New York. "We expect the souring in global risk sentiment in recent months, as concerns about the deteriorating European debt crisis and slowing global growth momentum intensifies, to continue to bolster foreign investors' appetite for US Treasury securities."
The report showed that net foreign purchases of US Treasuries totaled US$20.5 billion in March, up from US$15.4 billion the month before.
US assets kept their allure as the European debt crisis rose on concerns that Greece may leave the euro area. Greece's impasse over forming a government has threatened the implementation of austerity pledges under the international financial rescue plan.
Greece will hold new elections after President Karolos Papoulias failed to broker creation of a government following an inconclusive May 6 vote, Evangelos Venizelos, the leader of the socialist Pasok party, said yesterday.
China remained the biggest foreign owner of US Treasuries in March after its holdings rose 1.3 percent to US$1.17 trillion, its third straight increase, according to the Treasury. China had trimmed its holdings for five straight months before the January increase.
Japan, the second-largest buyer of Treasury debt, trimmed its holdings slightly, cutting them 0.2 percent to US$1.08 trillion.
Net buying of long-term equities, notes and bonds totaled US$36.2 billion during the month, compared with net purchases of US$10.1 billion in February, the US Treasury Department said yesterday in Washington.
"The continued buoyancy in foreign demand for US Treasuries is consistent with the preeminent safe-haven appeal of these securities to global investors," said Millan Mulraine, a senior US strategist at TD Securities in New York. "We expect the souring in global risk sentiment in recent months, as concerns about the deteriorating European debt crisis and slowing global growth momentum intensifies, to continue to bolster foreign investors' appetite for US Treasury securities."
The report showed that net foreign purchases of US Treasuries totaled US$20.5 billion in March, up from US$15.4 billion the month before.
US assets kept their allure as the European debt crisis rose on concerns that Greece may leave the euro area. Greece's impasse over forming a government has threatened the implementation of austerity pledges under the international financial rescue plan.
Greece will hold new elections after President Karolos Papoulias failed to broker creation of a government following an inconclusive May 6 vote, Evangelos Venizelos, the leader of the socialist Pasok party, said yesterday.
China remained the biggest foreign owner of US Treasuries in March after its holdings rose 1.3 percent to US$1.17 trillion, its third straight increase, according to the Treasury. China had trimmed its holdings for five straight months before the January increase.
Japan, the second-largest buyer of Treasury debt, trimmed its holdings slightly, cutting them 0.2 percent to US$1.08 trillion.
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