Private Investors Boost Holdings of US Assets in July

Demand for US assets remained high through the month of July, while net official purchases registered at their highest in more than three months. Such a result is especially significant given overall fears on the US subprime lending crisis, with the beginnings of the credit crunch seen in late July. Though markets will subsequently wait for August data to make more significant judgments on demand for US securities, this initial result quells fears that international investors are scaling back purchases of domestic securities.