International Demand of U.S. Assets Jump Up in November
January 19, 2010 - The Treasury Department recently released a monthly report stating that international demand for U.S. assets have grown, while several private investors have acquired a record quantity of government securities.
Net-buying for long-term U.S. securities reached $126.8 billion after a meagerly revised $19.3 billion purchased in October. This monthly data is perceived to be a loose measurement of how the U.S. can begin to fund the current trade deficit.
China is the largest intercontinental possessor of U.S. treasuries with $790 billion in holdings. After a $9.3 billion fall in November, China's holdings were still higher than they were a year ago.
Japan ranks as the second largest holder with $757 billion and with a gain of $11.4 billion for the month.
Overall, countries such as these [China and Japan] may be able to keep interest rates low, as long as they can keep an increased demand on U.S. securities.