Foreign demand for US financial assets falls

Foreign demand for long-term US financial assets falls in April; China, Japan cut holdings

WASHINGTON (AP) -- Foreign demand for long-term U.S. financial assets fell in April as both China and Japan trimmed their holdings of Treasury securities.

The Treasury Department said Monday that net purchases of stocks, notes and bonds obtained by foreigners fell to $11.2 billion in April, from $55.4 billion in March.

Treasury Secretary Timothy Geithner traveled to Beijing earlier this month to assure the Chinese government that the Obama administration is determined to get control of an exploding U.S. budget deficit, which is projected to hit a record $1.84 trillion this year.

China's holdings of Treasury securities represent about 10 percent of America's publicly held debt.
Martin Crutsinger, AP Economics Writer
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