US Households Are Saving And Buying More Treasuries
For the first time since the start of the financial crisis in August 2007, US investors own more Treasuries than foreigners.
Mutual funds, households and banks have boosted the domestic share of the US$8.18 trn in tradeable US debt to 50.2% as at end-May. This was in tandem with an increase in household savings rate to 6.4% of disposable income in June, the highest level in a year, as consumers slowed down their spending. Concerns over a stagnant income due to weak job market recovery might have prompted households to save more as well in recent months. The savings rate has averaged 5.9% since November 2008, the most for a 20-month period since 1992 through 1994. It fell to as low as 0.8% in April 2005 and averaged 2.2% from 2005 through 2007.
The World Economy...-10/08/2010
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