
I hear a lot of talk of how much foreigners invest in the U.S. by buying Treasuries. Over the past 5 years, the average seems to be about $20 billion per month or $250 billion per year. And the Treasury market is how big? Trillions...about 4-5 trillion in Treasuries? Foreigners make up about half of the purchases. If they slow down their purchases, then the Treasury will have to reduce their prices, thereby increasing interest rates to sell them domestically.