US Treasury Data Shows Foreign Demand Lower for US Assets in October

Foreigners ditched U.S. equities and cut mortgage-backed debt in October in favor of government bonds, U.S. Treasury data showed on Monday, as market and global economic uncertainty increased.

Overall, overseas investors bought $1.3 billion in long-term U.S. securities, the fewest in at least three years, with much of the selling coming at the expense of stocks and bonds issued or guaranteed by the biggest U.S. mortgage financing agencies.

The shift appeared to reverse the heavy purchases of stocks and mortgage-related bonds seen in September after the Federal Reserve announced plans to start buying $40 billion of mortgage debt per month to cut long-term interest rates and stoke growth.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza