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Foreign demand rises for long-term US assets
2009-10-16
WASHINGTON - Foreign demand for long-term U.S. financial assets rose in August even though China trimmed its holdings of Treasury securities. Foreigners purchased $28.6 billion more in assets than they sold in August. That followed a net increase of $15.3 billion in July, and $90.2 billion in June. The Treasury Department is auctioning record amounts of debt to cover a deficit estimated to have hit $1.41 trillion for the budget year that ended in September. Some economists worry that if overseas buyers don't keep buying U.S. debt, interest rates could rise. China trimmed its holdings by $3.4 billion to $797.1 billion in August, but still remained the largest foreign holder of Treasury securities. Japan, the second largest foreign holder, boosted its Treasury securities to $731 billion, from $724.5 billion in July.
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