Last week the United States Treasury Department released its latest data related to foreign buying of United States debt. It was a shocker.
It showed that in the 12 months leading up to November 2016, the month that Donald Trump was elected president, foreigners had been net sellers of $339 billion in U.S. Treasurys. In the 12 months leading up to December 2017, they had shifted to being net buyers of $20 billion.
Contrast this to the prior administration's record. In November 2008, when Barack Obama was elected president, the trailing 12-month figures showed that foreigners had been net buyers of $301 billion in Treasurys. This dropped to the $339 billion outflow figure in November 2016, just noted, when he lost power.
Putting the two sets of numbers together one sees that foreigners swinging $640 billion to the negative during the Obama presidency. During the Trump presidency to date, foreigners swung positive by $359 billion. Wow!!
It appears that foreign U.S. debt buyers are as enthused by the Trump agenda as much as domestic equity buyers are. Or, that the faith in the U.S. economic recovery is global in nature.