Monday, August 17, 2009
Foreign Demand for US Assets Rebounds
Despite Russia and China having trimmed their US assets, there has been an increased demand to gain American long-term securities holdings. The US Treasury Department reported that foreigners purchased $90.7 billion more in long-term U.S. securities than the Treasury Department sold in June. This is a significant change from May when the department sold $19.4 billion more than was purchased by foreign countries and investors. This shows that there may be increased confidence in the US economy from abroad than there previously has been.