Global Demand for U.S. Assets Slowed in October

Global demand for U.S. stocks, bonds and other financial assets slowed in October from the previous month, the Department of the Treasury, as the pace of economic recovery weighed on demand.

net purchases of long-term debt and bonds amounted to 27.6 billion during the month compared with net purchases of 77.2 billion U.S. dollars in September, according to statistics released today in Washington. Including short-term securities such as stock swaps, foreigners bought a net $ 7.5 billion compared with net purchases of 80.1 billion U.S. dollars last month.

U.S. economic recovery the deepest recession since the 1930's has lagged behind growth in emerging markets, burdened with an unemployment rate approaching 10 percent and record home foreclosures.

"There are some doubts about the pace of our recovery and the size of our deficit and may be dampening demand for U.S. assets," said Gary Thayer, chief strategist at Wells Fargo Macro Advisors LLC in San Luis by phone after the data were released. "I also think there may be better opportunities in other places that attract people."

Total net foreign purchases of Treasury bonds and bonds fell to 23.5 billion U.S. dollars in October of 78.9 billion U.S. dollars for purchases in September, according to data released today.

Treasury reporting

Treasury reporting of long-term securities captures international purchases of government notes and bonds, stocks, corporate debt and securities issued by U.S. agencies such as Fannie Mae and Freddie Mac, which buy mortgages .

China remained the largest foreign holder of U.S. Treasury bonds, after its holdings increased by 23.3 billion U.S. dollars to 906.8 billion U.S. dollars in October, according to Treasury statistics.

China's currency, the yuan has strengthened from a dollar parity was scrapped two years on 19 June. The Government will promote the reform of RMB exchange rate next year, according to a statement on the website of the State Council of 12 December after the Central Economic Work Conference.

The Treasury statistics from other countries were Japan, the second largest operator, increased its holdings by 12.8 billion U.S. dollars to 877.4 billion U.S. dollars in October. Hong Kong, counted separately from China, increased its share in $ 3.3 billion to $ 139 200 000 000.