Friday, September 17, 2010

Purchases of long-term U.S. securities increased in July, the dollar is still "safe haven"

As reported the U.S. Treasury, the demand for U.S. long-term securities rose in July. In a report published on Thursday said the net purchases of such securities at 61.2 billion purchase in June amounted to 44,4 billion Such strong demand this year due to reluctance to invest in European debt securities. This situation is partly justified, and such a significant decline in yield U.S. debt securities (an increase of their prices), which is observed in recent months. The main buyer in July became Japan (17,4 billion), and the principal holder remained China (846.7 billion).
One can only conclude that, despite the often discussed the structural problems the United States, the U.S. debt assets remain very attractive, while maintaining its status as a "safe haven". It is interesting now to know how this is necessary for the United States. After all, we remember how the Japanese reacted strongly to the increase in demand for its own debt securities by China as it further strengthens the yen, although there were purchases on the order below. We are waiting for the reaction Fed on September 21.


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