Mortgage Pros, Inc.

Jan. 19 (Bloomberg) — International demand for long-term U.S. stocks, bonds and financial assets rose in November as private investors purchased a record number of government securities, a Treasury Department report showed.
Net buying of long-term equities, notes and bonds totaled $126.8 billion for the month, compared with net buying of $19.3 billion in October, the Treasury said in Washington. Including short-term securities such as stock swaps, foreigners purchased a net $26.6 billion in November, compared with net selling of $25.4 billion the previous month.
The economic recovery from the deepest recession since the 1930s and growing corporate profits are making U.S. investments more attractive. Increased demand for U.S. securities by countries such as China may help keep interest rates low.
“There’s still a lot of investors seeking the security of government paper,” Gary Thayer, macro strategist at Wells Fargo Advisors in St. Louis, said before the report. “The investment environment, a lot of people think, is still pretty uncertain.
We are seeing decent demand.”
Economists projected investors would purchases a net $27.5 billion of long-term securities in November, according to the median of six estimates in a Bloomberg News survey. The Treasury previously reported total purchases of long-term stocks, notes and bonds were a net $20.7 billion.
The Treasury’s reporting on long-term securities captures international purchases of government notes and bonds, stocks, corporate debt and securities issued by U.S. agencies such as Fannie Mae and Freddie Mac, which buy home mortgages.
To contact the reporters on this story:
Vincent Del Giudice in Washington at +1-202-624-1882 Or vdelgiudice@bloomberg.net
To contact the editor responsible for this story:
Chris Wellisz at +1-202-624-1862 or cwellisz@bloomberg.net

Economic Calendar

Date Time Event Survey
01/19/2010 09:00 Net Long-term TIC Flows NOV $25.0B
01/19/2010 09:00 Total Net TIC Flows NOV – -
01/19/2010 13:00 NAHB Housing Market Index JAN 17
01/19/2010 17:00 ABC Consumer Confidence 17-Jan -44
01/20/2010 07:00 MBA Mortgage Applications 15-Jan – -
01/20/2010 08:30 Producer Price Index (MoM) DEC 0.00%
01/20/2010 08:30 PPI Ex Food & Energy (MoM) DEC 0.10%
01/20/2010 08:30 Producer Price Index (YoY) DEC 4.50%
01/20/2010 08:30 PPI Ex Food & Energy (YoY) DEC 1.00%
01/20/2010 08:30 Housing Starts DEC 574K
01/20/2010 08:30 Building Permits DEC 580K
01/20/2010 08:30 Housing Starts DEC – -
01/21/2010 08:30 Initial Jobless Claims 16-Jan 440K
01/21/2010 08:30 Continuing Claims 9-Jan 4598K
01/21/2010 09:00 RPX Composite 28dy YoY NOV – -
01/21/2010 09:00 RPX Composite 28dy Index 19-Nov – -
01/21/2010 10:00 Philadelphia Fed. JAN 18.5
01/21/2010 10:00 Leading Indicators DEC 0.70%

Treasuries Snap Two Days of Gains on Bets Rally Unsustainable
2010-01-19 14:15:56.653 GMT
By Susanne Walker and Cordell Eddings

Jan. 19 (Bloomberg) — Treasuries fell for the first time in three days as investors bet the rally that pushed 10-year note yields to the lowest levels in almost a month may not be sustained.
Ten-year notes declined after last week posting the biggest gain since November amid indications the economic recovery has yet to take hold. Foreign purchases of Treasury notes and bonds were $118.3 billion in November compared with purchases of $38.9 billion in October, a Treasury Department report showed.
“We had a decent rally last week,” said Michael Pond, an interest-rate strategist in New York at Barclays Plc, one of 18 primary dealers that trade with the Federal Reserve. “Yields have gotten closer the yield levels that just aren’t attractive given the lack of news.”
The yield on the 10-year note rose three basis points, or
0.03 percentage point, to 3.70 percent at 9:13 a.m. in New York, according to BGCantor Market data. It earlier touched 3.64 percent, the lowest level since Dec. 21. The 3.375 percent security due November 2019 fell 6/32, or $1.88 per $1,000 face amount, to 97 11/32.
The yield fell 15 basis points last week as retail sales unexpectedly declined and consumer prices rose less than forecast.

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