The demand for US debt declined in February as foreign buyers purchased long-term equities, notes and bonds totaling $26.9 billion compared with net buying of $51.1 billion in January. The economy relies on foreign investment to finance its budget and trade deficits, and the TreasuryÃ¢â‚¬â„¢s reporting on long- term securities captures international purchases of government notes and bonds, stocks, corporate debt and securities issued by government agencies.
The government is forecast to report a record annual budget deficit for fiscal 2011. The White House and Congress last week reached agreement on a spending plan for the current fiscal year, which started Oct. 1, and are now working on a plan extend the statutory debt limit by next month.
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