Bond Outlook [by bridport & cie, October 19th 2005]
In August, bonds showed a big inflow into the USA, while equity showed a net outflow. Bonds had two positive components, foreigners buying US bonds ($ 84.1 billion), and Americans selling foreign bonds ($ 17 billion net). In contrast, net inflow for equity from foreigners dropped to $ 3.8 billion net, while Americans bought more foreign equity ($13.5 billion net). The resulting capital flow was easily enough to cover the current account deficit. |
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