Wednesday, May 30, 2007

Foreigners' U.S. Notes Rise to 80 Percent as Treasuries Prove Irresistible

(Bloomberg) -- For the moment, at least, financing
the U.S. budget deficit may be getting less arduous as foreign
investors now own a record 80 percent of the Treasury notes due
in three to 10 years.

Not since the 19th century have foreigners held so much
American debt, said Alan Taylor, a professor of economic history
at the University of California, Davis. International investors
own $672 billion of the $835.4 billion Treasuries due in three
to 10 years, according to research by Lawrence Dyer, a New York-
based strategist at HSBC Securities USA Inc., the investment
banking arm of HBSC Holdings Plc in London.


Read more at Bloomberg Bonds News

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