January 16, 2015 / 9:37 PM / 5 years ago

UPDATE 1-Foreigners buy U.S. assets in Nov, led by agencies, corporates

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NEW YORK, Jan 16 (Reuters) - Foreigners bought long-term U.S. securities in November, with investors buying agency and corporate bonds, as well as equities.

Data from the U.S. Treasury Department showed on Friday that net purchases of long-term U.S. assets were $33.5 billion in November, after outflows of $1.4 billion in October.

But including short-dated assets such as bills, overseas investors sold $6.3 billion in U.S. assets in November, compared with a revised inflow of $179.5 billion the previous month.

Investors in general tend to focus on long-term assets.

Treasuries showed a net outflow of $4.8 billion in November, after three straight weeks of inflows. The benchmark 10-year U.S. Treasury note yield ended November at 2.1960 percent while the dollar index was at 88.356, which was then the highest since June 2010.

Data also showed China’s holdings of U.S. Treasuries declined for a third straight month to $1.250 trillion in November, from $1.252 trillion in October. China is still, however, the largest holder of U.S. government debt.

Japan’s holdings of Treasuries increased in November to $1.241 trillion from $1.222 trillion the previous month.

The November report also showed inflows into U.S. equities of $5.8 billion after outflows of $27.2 billion in October.

Investors also bought U.S. corporate bonds totaling $25.0 billion, up from $7.9 billion in October, for a third straight month of inflows.

Agency bonds continued their winning streak in November, attracting net inflows of $33.3 billion, sharply up from $3.9 billion in October. Foreigners bought agencies for a seventh straight month. (Reporting by Gertrude Chavez-Dreyfuss; Editing by James Dalgleish)

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