US: Strong foreign demand of financial assets - RBS
|Analysts at RBS note that the foreign appetite for US financial assets shows few signs of waning.
Key Quotes
“Net foreign demand for long-term US securities rebounded to $74.8bn in July after net sales of $36bn in June, driven by significant overseas buying of US securities and sizeable US sales of foreign financial assets.”
“Total Chinese holdings of US government bonds remained pretty steady in early Q3, at $1.17 trillion. So, there is little evidence China is divesting from US government bonds despite ongoing US/Sino trade tensions. China’s central bank has ruled out a forced devaluation of the Yuan, fearful of a repeat of marked capital outflows in early 2015.”
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