Foreign Investors Returning to U.S. Capital Markets?

Net Purchases of U.S. Securities Strongest in Six Months

• Net purchases of long-term U.S. securities totaled $55.8 billion in March, the highest outturn in six months. Not only did foreign central banks continue to buy Treasury securities, but private investors bought $30 billion worth of U.S. securities.

• Foreign investors showed some interest in riskier U.S. assets by purchasing $12.4 billion worth of U.S. equities in March.

U.S. Investors Willing to Invest Abroad Again?

• American investors dumped foreign securities late last year as capital markets locked up. It appears that trend may be coming to an end.

• Another indicator of receding risk aversion was the reduction in net purchases by foreign investors of U.S. Treasury bills, the safest financial assets on the planet.