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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (45645)	11/16/2005 11:50:54 AM
From: Amark$p	Respond to of 110194

Also today, the government provided and update on international demand for U.S. financial assets. Foreign investors own about half of U.S. government debt. Oversees investors purchased a net $21.8 billion of Treasuries in September, compared with $28.2 billion in August. Japan, the largest foreign owner of Treasuries, cut its holdings of the securities this year to $687.3 billion from last year's peak of $699.4 billion in August, according to the latest Treasury data. ``Foreign demand for U.S. long-term assets has not really abated, at least as of September,'' said Alex Li, interest-rate strategist at Credit Suisse First Boston in New York. ``This is good news overall for long (term) interest rates that will limit any sharp rise.'' Foreign investors bought 14 percent of the $79 billion in benchmark 10-year notes auctioned this year, down from 21 percent in 2004, Treasury Department data show. Randal Quarles, U.S. Treasury undersecretary for domestic finance, said concern a slowdown in overseas buying of U.S. notes will hurt the market is ``misplaced,'' and foreign central banks may keep preferring dollar-denominated assets. ``We work hard to ensure our securities are attractive,'' Quarles said in a speech at a conference in Hong Kong organized by the Bond Market Association. ``All indications are that the major central banks continue to view the dollar as the world's reserve currency.''