Foreigners increased their purchases of long-dated U.S. securities in May as capital inflows rose to $55 bilion. China, the largest investor in U.S. Treasuries, increased its holdings to $1.16 trillion, up .8% from its holdings a year ago. Today’s graphic shows the top foreign holders of U.S. Treasuries as well as the net long-term capital inflows since 2011.

Eagle Asset Management’s James Camp says that while U.S. treasuries are getting a bit of a break due to Europe’s debt concerns, he expects yields on the 10-year could fall as low as 1.5%.

Reuters Credit Analyst Ed Rombach says fiscal austerity and rising prices may keep U.S. Treasury yields down even after QE2 ends and Bill Gross’ net short position in U.S. Treasuries is wrong.

Reuters credit analyst Ed Rombach says Treasuries have gained support in the wake of Portugal’s 2-year bond auction.

Courtesy of Reuters Insider

07 Mar 2011Thomson Reuters

Along with oil price pressures, technology shares lead the market to end in the red after a downgrade of the semiconductor sector.