WASHINGTON -- Foreign demand for long-term U.S. securities jumped in April, partly due to greater interest in Treasury notes and bonds, according to a Treasury Department report released Monday.
Net foreign acquisition of long-maturity U.S. securities totaled $102.8 billion in April, following purchases of $53.3 billion the month before, the Treasury report showed. Foreign net purchases of U.S. Treasury notes and bonds totaled $80.3 billion in April, up from $53.6 billion in March.
"The bottom line from this report is that overseas demand for U.S. long-term securities remained strong in April and in the first quarter of 2008, notwithstanding downward pressure on the U.S. dollar and extremely turbulent conditions in world financial markets," Brian Bethune, chief U.S. financial economist at Global Insight, said in a research note. "This indeed is positive news overall."
This is probably due to the fact that the dollar seems to have stablilized. Once foreigners become convinced that the dollar has stopped falling, they will be more comfortable investing here. Hopefully, we have reached that point.