Overseas investors flooded back into U.S. markets in September, according to the Treasury International Capital, or TIC, report released Tuesday. Foreign private investors purchased a net $89.8 billion of fixed-income coupon securities in September, the fastest pace since February, and up from $26.5 billion in August and net sales of $3.9 billion in July. Foreigners bought $48.2 billion of Treasury bonds and notes, $21 billion of government agency bonds and $20.7 billion of corporate bonds, according to the report. These are the largest monthly purchases of U.S. corporate bonds by foreign investors since December 2008, said Thomas Simons, a government-debt economist in New York at Jefferies. Simons said that foreign investors have been buying U.S. bonds at a healthy but erratic pace over the past two years and were most likely attracted to the relatively high yields on U.S. debt in September.
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