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Foreign Investors Buying Less 10-Year Notes

Foreign Investors Buying Less 10-Year Notes Foreign Investors Buying Less 10-Year Notes

Overseas investors purchased $2.734 billion of US 10-year Treasury notes at an auction in early July, which was the lowest amount since October 2014, according to the US Treasury Department’s auction allotment data released on Friday, Reuters reported.  Large investment managers bought $9.318 billion at the 10-year auction held on July 12, which was their fewest since March and lower than the $10.380 billion they purchased in June. Reduced purchases from these two groups of investors resulted in the weakest 10-year note sale in more than seven years.  The ratio of bids to the $20 billion of 10-year notes offered was 2.33, down from 2.70 at the prior 10-year auction in June and the lowest since March 2009 when it was 2.14. On the contrary, foreign investors acquired $1.772 billion of $12 billion in 30-year Treasury bonds offered on July 13, which was their most at a 30-year auction since October 2015. Domestic fund managers purchased $7.136 billion of 30-year or long bonds, more than the $6.903 billon they bought in June.

 

Financialtribune.com