Net foreign purchases of US securities totaled $15.6 bln in December, the smallest net purchase since July 2000 ($8.1 bln). Excluding short-term securities, the net purchase was even more meager at $2.5 bln.
Net purchases of Treasuries totaled $10.6 bln in December, compared with a net purchase of $34.1 bln in November. Private foreign investors bought a net $4.6 bln, after making a net purchase of $32.5 bln the previous month.
Meanwhile, foreign official institutions made a net purchase of $6.1 blnup from $1.0 bln in November. While Fed custody holdings were strong, some pullback was inevitable given the bear market of December. Yields on the 10-year note backed up a good 35-40 bps.
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