Highlights
Net foreign purchases of U.S. long-term securities rose a very strong $90.9 billion in November vs. an even stronger $114.0 billion in October, two months of gains that will ease concern, at least for now, that foreign demand for U.S. securities may weaken. Foreign demand for U.S. Treasuries, agency bonds, corporate bonds all showed strong demand, with less but still adequate demand for equities. U.S. demand for foreign securities was weak as U.S. residents sold a net $20.6 billion of long-term foreign securities.

Net foreign holdings of short-term securities rose $36.5 billion in the month, up from $31.9 billion in October. These levels reveal strong demand for cash, a reflection of the disruptions in the global credit markets.

But the acute troubles of August and September had faded by November as foreigners resumed their holdings of long term U.S. securities. But November was a long time ago given the subsequent rush of events headed by growing concern at the Federal Reserve over the health of the economy and credit markets and by soft consumer spending during the holidays. Economic weakness along with the soft dollar will keep future attention focused on this indicator. The dollar firmed slightly in reaction to the report.

2008 Release Schedule

Released On: 1/16 2/15 3/17 4/15 5/15 6/16 7/16 8/15 9/16 10/16 11/18 12/15 Released For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct