Monday, July 18, 2005

Foreign Demand for US Assets Increases

- Net Foreign Security Purchases for May rose to $60.0B versus estimates of $60.0B and $47.4B in April.

BOTTOM LINE: International investors increased their holdings of US assets in May by the most since February as the world’s largest economy outperformed rivals in Europe and Asia, Bloomberg reported. Caribbean holdings, which analysts link to hedge funds located in the region, only increased by $1.3 billion. I expect foreign demand for US assets to continue increasing as the dollar remains firm, US economic growth remains relatively healthy and global growth slows.

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