Overseas Demand For Treasuries Drops

AP is reporting that overseas demand for long-term US financial assets has eased in recent months. China’s massive holdings of Treasury securities, however, remained steady.

According to the report, in October foreigners bought $20.7 billion more in Treasuries assets than they sold. This represented a $20 billion decrease from the previous month.

Although China’s Treasury holdings of $789.9 billion remained level over those two months, the holdings of other countries dropped. Japan, for example, held $746.5 billion in October, down $5 billion from September.

The US deficit reached a record high of $1.42 trillion in this budget year, and the White House is anticipating that level to climb to $1.5 trillion in the next budget year.