Global Economic Watch International Finance December 31, 2009

Auction

I.O.U.s

Public Debt

External Debt

Foreign Purchases The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for October Net foreign purchases of long- term securities were $20.7 billion. Net foreign purchases of long-term U.S. securities were $43.4 billion. Of this, net purchases by private foreign investors were $28.8 billion, and net purchases by foreign official institutions were $14.6 billion.

Discussion How does the Treasury finance its borrowing? How are interest rates on Treasury notes determined? Why U.S. interest rates may be higher next year?