Global Demand For U.S. Assets Higher In November

The Treasury Department has announced that in November private investors worldwide bought a record amount of long-term U.S. stocks, bonds, and other government securities, according to Bloomberg. The net-purchase of long-term equities, bonds and notes reached $126.8 billion in November, compared with $19.3 billion in October.

Foreign purchases were a net $26.6 billion in November, after net sales of $25.4 billion the month before. Foreign Treasury note and bond sales were up drastically in November to $118.3 from $38.9 billion previously. China remains the largest holder of T-notes at $790 billion, which is $9.3 billion lower than October, but $76.4 billion higher than November 2008. The demand for U.S. securities is likely due to the global economic instability according to economists, who tend to share the view that “U.S.-based assets have always stood the test of time during periods of great uncertainty.”

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