According to a recent report, of the U.S. Department of the Treasury, the U.S. Treasuries longer-term notes by other countries inclined by $24.7 billion during May compared to April 2011.
China’s holding of U.S. Treasuries longer-term notes rose during May for the second time in 2011 by 0.63% or $7.3 billion to a record $1.159.8 trillion, well above the $868 billion China had held back in May 2010. There were also rises in May compared to April in holding for Japan (by $5.5 billion) and UK (by $13.5 billion).
During May, the total net purchase of long term domestic securities (the gap between gross foreign purchases and gross foreign sales) reached $44.6 billion, nearly unchanged compared to $44.8 during April.
On the other hand, the total net purchase of long term foreign securities (the gap between gross foreign purchases and gross foreign sales) reached -$21 billion.
The recent rise in the countries’ holding of U.S. Treasuries longer-term notes is probably one of the reasons for the robustness of US dollar in recent months despite the quantitative easing plans of the Federal Reserve. If this trend will continue the following months it may further strengthen the US dollar and consequently weaken major commodities including gold prices.
The current Dated Brent spot oil price declines by $1.74/b and it is at $115.99 / barrel as of 15:07*.
Current gold price, short term futures (August 2011 delivery) is traded at $1,600.9 per t oz. a $10.8 increase or 0.68%, as of 14:48*.
Euros to USD is currently traded down at 1.4073 a 0.5972% decrease as of 15:00*.
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