Tuesday, August 16, 2011

Foreigners' Acquisitions of US Securities (fg)

According to new data released by the US Treasury Department, in June 2011, foreign investors sold US Treasury Securities (net -4,5 Mrd. USD). Whereas, net purchases of the foreign private sector had been -18.3 Mrd USD, net purchases of foreign central banks was 13.8 Mrd. USD. In so far, the increased uncertainty of the sustainability of US public debt triggered a massive private outlow of foreing asset holders (the highest since 2008). It is for that reason, both economists and market observers claim that the US dowgrade of S&P had been already anticiapted(1,2) by the market and priced accordingly.