The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Buyers’ strike hits bond market

Investor demand for US
corporate debt (2003)

 
Source: CreditSights

Political divisions over the Iraq war may have finally led to the much-touted buyers' strike by foreign investors in US assets, according to recent data from the US Treasury about foreign purchases of US debt.

Data for February, when tension between countries such as France and Germany and the US was peaking, showed purchase levels were well below last year's monthly average. There was net foreign selling of US treasuries of $4.7 billion, something not seen since last August. Net foreign purchases of agency debt were almost half of last year's monthly average at $8.6 billion.

The first indications were that the war was having no impact on investment decisions. In fact, in January, foreigners purchased $23.4 billion-worth of US corporate debt - the highest level since May 2002. This was partly a response to the surge of primary issuance at the beginning of the year but was still beyond expectations.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree