Vincent Del Giudice
May 16, 2011
Global demand for U.S. stocks, bonds and other financial assets weakened in March from a month earlier as China trimmed its holdings of government securities, the Treasury Department reported.
Net buying of long-term equities, notes and bonds totaled $24 billion during the month compared with net buying of $27.2 billion in February, according to statistics issued today in Washington. Including short-term securities such as stock swaps, foreigners purchased a net $116 billion compared with net buying of $95.6 billion the previous month.
The Treasury’s reporting on long-term securities helps gauge confidence in the U.S. economy as well as fiscal and monetary policy. The data capture 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 home mortgages.