Foreign purchase of US securities surge

I’m not sure what this means, but it sounds like confidence in the long-term economic outlook of the U.S. is up.

From Raw Story:

Foreign purchases of US long-term securities surged in June, reversing an outflow the previous month and signaling recovery of battered financial markets, new data showed Monday.

The jump was primarily driven by a sharp increase in overseas demand for long-term US Treasury securities, including from China, the biggest owner of American debt, according to the monthly US Treasury international capital report.

It said that net long-term security transactions in June climbed to 90.7 billion dollars from negative 19.4 billion dollars in May as both private and official foreign investors beefed up their portfolios.

The June figure was substantially higher than market expectations of 17.5 billion dollars.

Read the rest:

http://rawstory.com/08/news/2009/08/17/foreign-purchase-of-us-securities-surge/

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