Global demand for U.S. stocks, bonds and other financial assets fell in September from a month earlier, the Treasury Department reported. Net buying of long-term equities, notes and bonds totaled $81.0 billion during the month compared with net buying of $128.7 billion in August, according to data issued today in Washington. Including short-term securities such as stock swaps, foreigners purchased a net $81.7 billion compared with net buying of $11.2 billion the previous month. “The U.S. is still an attractive place for foreign investors, but U.S. yields were pushed lower relative to some foreign markets in anticipation of the Federal Reserve’s quantitative easing,” said Gary Thayer, chief macro strategist at Wells Fargo Advisors LLC in St. Louis, by telephone after the data were released. “That may have reduced the attractiveness a bit. Longer-term, we’re still the reserve currency of the world and that continues to support inflows.” 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. China remained the biggest foreign holder of U.S. Treasuries, after its holdings rose by $15.1 billion to $883.5 billion in September from $868.4 billion in August, according to the Treasury’s statistics. The yield on the 10-year Treasury note, which moves inversely to its price, fell to 2.87 percent at 9:34 a.m. from 2.96 percent late yesterday. Japan, Hong Kong The Treasury’s statistics on other countries showed Japan, the second-largest holder, increased its holdings by $28.4 billion to $865 billion in September from $836.6 billion in August. Total foreign purchases of Treasury notes and bonds were $78.3 billion in September compared with purchases of $117 billion in August. Foreign demand for U.S. agency debt from companies such as Fannie Mae and Freddie Mac registered net selling of $8.2 billion in September after buying of $4.6 billion in August. Net foreign purchases of equities were $20.7 billion in September after net purchases of $4.8 billion in August. Investors purchased a net $578 million in U.S. corporate debt in September after buying $10 billion in August. To contact the reporters on this story: Vincent Del Giudice in Washington at Or vdelgiudice@bloomberg.net To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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