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Nov. 18 (Bloomberg) — International demand for U.S.
financial assets rose more than economists forecast in September
as China surpassed Japan to become the biggest foreign holder of
Treasuries.
Total net purchases of long-term equities, notes and bonds
increased a net $66.2 billion in September from $21 billion the
previous month, the Treasury said today in Washington. Including
short-term securities such as stock swaps, foreigners bought a
net $143.4 billion, compared with net buying of $21.4 billion
the month before.
Foreign demand for U.S. agency debt from companies such as
Fannie Mae and Freddie Mac increased from a month earlier.
Purchases of long-term agency debt totaled a net $6.2 billion,
compared with net sales of $8.7 billion in August.
The U.S. trade deficit shrank in September by 4.4 percent
to $56.5 billion, the smallest in almost a year.