WSJ: Foreign demand for long-term U.S. securities jumped in April, partly due to greater interest in Treasury notes and bonds, according to a Treasury Department report released Monday.
Net foreign acquisition of long-maturity U.S. securities totaled US$102.8 billion in April, following purchases of US$53.3 billion the month before, the Treasury report showed. Foreign net purchases of U.S. Treasury notes and bonds totaled US$80.3 billion in April, up from US$53.6 billion in March.
Comments: The significant jump in net inflows into US securities is crucial in assessing the global investors' mood. We have to remember that we are talking of a sub prime crisis on its last legs, but also the USD downtrend seemingly trying to reverse its persistent weakness. The net inflows is significant also as the world grapples with higher inflation and spiraling food prices. In light of all these mini waves, its a little surprising to see that there are good net inflows into US securities.
p/s photo: Nabila Syakieb