Private foreign investors sell Treasurys in Jan.

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 March 15, 2013, 11:36 a.m. EDT 

 http://www.marketwatch.com/story/private-foreign-investors-sell-treasurys-in-jan-2013-03-15?siteid=bigcharts&dist=bigcharts

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By Greg Robb WASHINGTON (MarketWatch) - Private foreign investors sold Treasurys in January but foreign official accounts picked up the slack, according to a report by the Treasury Department on Friday. Private foreign investors sold $20.8 billion of Treasurys while foreign accounts bough $53.1 billion. The strong official demand appears to have come from China and Japan, said Gennadiy Goldberg, an economist at TD Securities in New York. At the same time, Caribbean accounts, a proxy for hedge funds, shed $29.3 billion of Treasurys in January, "suggesting that hedge funds stampeded out of the sector and into riskier assets," Goldberg said in a note to clients. Foreigners bought only $5.7 billion of U.S. equities in January, down from $25.9 billion in December. The relative calm in markets in the month may have led some investors to invest funds into riskier assets abroad, he noted.