financial services

International demand for U.S. assets rises on global slowdown

ACCORDING TO THE TREASURY DEPARTMENT, net buying of long-term U.S. financial assets totaled $64.2 billion during December, up from $52.4 billion in November.
Posted 2/15/13

WASHINGTON - International purchases of U.S. stocks, bonds and other financial assets rose more than forecast in December as investors sought shelter from slowing global growth.

Net buying of long-term financial assets totaled $64.2 billion during the month, up from net purchases of $52.4 billion in November, the Treasury Department said today in Washington. Economists surveyed by Bloomberg projected net buying of $35 billion of long-term assets, according to the median estimate.

“Even with the fiscal issues, Treasuries are the deepest most liquid markets in the world for safe assets,” Thomas Simons, a government debt economist at Jefferies Group Inc. in New York said before the report was released. “At the end of the year there was some concern in risk markets that generated safe haven flows.”

The International Monetary Fund in January cut its global growth forecasts and now projects a second year of contraction in the euro region as progress in battling Europe’s debt crisis fails to produce an economic recovery.

The world economy will expand 3.5 percent this year, less than the 3.6 percent forecast in October, the Washington-based IMF said in an update of its World Economic Outlook report. While the fund projects growth this year increasing from last year’s 3.2 percent pace, it expects the 17-country euro area to shrink 0.2 percent in 2013, instead of growing 0.2 percent as forecast in October.

President Obama

President Barack Obama and Republicans are locked in a standoff over how to avert $1.2 trillion in automatic spending cuts set to take effect on March 1 unless Congress acts to stop or replace them. In addition, a temporary suspension of the nation’s $16.4 trillion debt ceiling only runs through May 18.

Including short-term securities such as stock swaps, foreigners bought a net $25.2 billion in December, down from net purchases of $29.7 billion the previous month.

China remained the biggest foreign owner of U.S. Treasuries in December after its holdings rose $19.7 billion to $1.2 trillion, according to the Treasury. Japan, the second-largest holder rose $2.5 billion to $1.12 trillion in holdings.

Foreigners bought a net $29.9 billion of Treasuries in December, according to today’s report, up from $26.4 billion the month before.

Estimates of foreign transactions in long-term U.S. assets in December ranged from net buying of $28.5 billion to $60 billion, according to five economists surveyed by Bloomberg before the report.

PBN Hosted

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News