U.S. Investment Outflow Hits Record as China Cuts Holdings
Source: Bloomberg
By Kasia Klimasinska Aug 15, 2014 11:04 AM ET
The U.S. posted a record cross-border investment outflow in June as China and Japan reduced their holdings of Treasuries and private investors abroad sold bonds and notes.
The total net outflow of long-term U.S. securities and short-term funds such as bank transfers was $153.5 billion, after an inflow of $33.1 billion the previous month, the Treasury Department said in a report today. The June figure, and $40.8 billion in net selling of Treasury bonds and notes by private investors in June, were the largest on record, the Treasury said.
Right at the beginning of June, you had a very strong sell-off of Treasuries and thats what frightened a lot of private investors, Gennadiy Goldberg, U.S. strategist at TD Securities USA LLC in New York, said by phone. As yields stayed lower in subsequent months, some of the investors probably resumed their buying.
Chinas holdings of U.S. Treasuries declined by $2.5 billion to $1.27 trillion, while Japanese holdings dropped $600 million to $1.22 trillion, according to a Treasury report today.
Read more: http://www.bloomberg.com/news/2014-08-15/u-s-investment-outflow-reaches-record-as-china-sells-treasuries.html
CountAllVotes
(20,868 posts)n/t
& recommend.
Demeter
(85,373 posts)could be a false start, or a feint. Don't look for honesty in finance, you'll go blind.
CountAllVotes
(20,868 posts)Crash of 1929, crash of 1988, crash of 2001, crash of 2008 ...
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