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M. Continuo

Private investors drive capital inflow in November


    NEW YORK (Reuters) - Foreigners increased purchases of U.S. securities in November, the U.S. Treasury Department said on Tuesday, though it was private investors rather than central banks who did the bulk of the buying.

    The United States attracted a net long-term capital inflow of $85.1 billion, up from an upwardly revised October inflow of $28.9 billion. Net Treasuries purchases rose, though China, the largest foreign U.S. creditor, cut holdings by $11.2 billion.

    Including short-dated assets such as bills, net inflows rose to $39 billion from an upwardly revised $15.1 billion. But the inflow depended heavily on private buyers, with official investors, including central banks, recording a record net outflow of $40.8 billion, Treasury said. The Federal Reserve announced in November its $600 billion bond-buying program.

    (Reporting by Steven C. Johnson; Editing by Chizu Nomiyama)