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UPDATE 1-Foreigners cut purchases of longer-dated U.S. bond supply in June
June 22, 2017 / 8:17 PM / a month ago

UPDATE 1-Foreigners cut purchases of longer-dated U.S. bond supply in June

2 Min Read

    * Offshore investors buy fewest U.S. 30-year bonds since
Sept 2015
    * Fund managers buy most benchmark 10-year notes since
August

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    NEW YORK, June 22 (Reuters) - Overseas investors slashed
their purchases of longer-dated U.S. Treasury debt at government
auctions in early June ahead of the Federal Reserve's widely
expected interest rate hike, U.S. Treasury Department data
released on Thursday showed.
    Offshore investors turned into sellers of Treasuries in
April, Treasury data showed last week.             
    On the other hand, investment funds ramped up purchases of
the new supply of benchmark 10-year and 30-year Treasury
securities earlier this month.
    Foreigners bought $2.478 billion of the $20 billion in
10-year Treasuries offered on June 12. This was half of the
$4.894 billion they bought in May and the fewest of this
maturity purchased at an auction since last September.
    They purchased $798 million of the $12 billion in 30-year
bonds offered on June 13, down from $1.563 billion in May. This
was also the smallest amount of long bonds bought at auction
since September 2015.
    On June 14, the U.S. central bank as expected raised key
overnight borrowing costs by a quarter point to 1.00-1.25
percent, its second rate hike in 2017. The Fed also offered
details on its plan to begin shrinking its $4.5 trillion balance
sheet, possibly later this year.
    Fund managers bought $11.105 billion in 10-year government
notes earlier this month, the most since August 2016. This
compared with $9.762 billion in May. 
    Fund managers also purchased $7.285 billion in 30-year
Treasuries in early June, less than the $7.621 billion they
bought in May.             

 (Reporting by Richard Leong; Editing by Richard Chang)
  

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