February 23, 2018 / 9:00 PM / 4 months ago

UPDATE 1-Foreigners scoop up U.S. bond supply at refunding

    * Foreigners buy most U.S. 3-year debt since September
    * Overseas 10-year note purchases jump to highest since May
2016
    * Foreigners purchase most 30-year bond supply in three
years

 (Recasts lead with buying by overseas investors)
    NEW YORK, Feb 23 (Reuters) - Overseas investors loaded up a
hefty portion of the $66 billion in Treasuries supply sold in
early February when the government sought to raise cash to fund
an expected increase in its budget gap, Treasury data released
on Friday showed.
    Their purchases at the quarterly refunding were equal to 22
percent of the supply offered. The purchases marked a contrast
from the unremarkable presence of overseas investors at recent
Treasury auctions, based on the Treasury data.
    Analysts had partly blamed lackluster foreign appetite for
Treasuries on a weak dollar       , which has made holding U.S.
assets less attractive.
    Overseas investors, which include private investment funds
and foreign central banks, bought $5.268 billion of the latest
three-year supply, which was their largest share since
September. That compared with the $3.316 billion they purchased
in January, according to the Treasury’s auction allotment data.
    They purchased $7.135 billion of the latest 10-year supply,
the most since May 2016 and compared with the $4.144 billion
they purchased the previous month. 
    Foreign investors bought $2.283 billion of 30-year bonds,
which was the highest amount at an auction for this maturity in
three years. They purchased $1.291 billion in 30-year bonds in
January.      

 (Reporting by Richard Leong; Editing by Leslie Adler)
  
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