Net additions to income were $4.3 billion, largely from realized gains on sales of U.S. government securities
. The remaining income reflects unrealized gains of $1.3 billion on investments denominated in foreign currencies that were revalued to reflect current market exchange rates.
The Trust Funds are invested in U.S. government securities
. After about the year 2020, outgo will exceed income thus creating substantial deficits."
As many of these countries are part of the dollar currency area, they are creating another large new market for U.S. government securities
and thus helping to fund the American current account deficit.
He had joined the New York Fed in January 1992 as executive vice president and head of its financial markets group, which includes domestic open market and foreign exchange operations and U.S. government securities
commercial banks routinely held commercial and industrial loans in excess of U.S. government securities
. But in the three-year period ending December 1993, commercial bank holdings of U.S.
Treasury securities in the world, excluding federal government accounts and trust funds such as the Social Security and Medicare trust funds, As of January 2, 2002, the Federal Reserve System Open Market Account held $554.8 billion of U.S. government securities
, or about 16 percent of the stock of Treasury securities held outside of government accounts and trust funds.
International Investment Position, 1979-99(a) Billions of dollars Asset 1979 1989 1999 U.S.-owned assets abroad(b) 508.9 1,944.2 7,173.4 Official reserves 19.0 168.7 136.4 Other government 58.4 84.2 84.2 Private(b) 431.5 1,691.3 6,952.7 Foreign direct investment(b) 186.8(c) 807.7 2,615.5 Bonds 56.6 98.5 556.7 Corporate stocks 56.6 91.7 2,026.6 Other 188.1 642.2 1,753.8 Foreign-owned assets in the United States(b) 413.9 2,211.9 8,647.1 Foreign official 159.5 337.3 869.3 U.S. government securities
106.6 265.7 628.9 Other 9.9 9.6 50.7 Private(b) 254.4 1,874.7 7,777.7 Foreign direct investment(b) 54.5 533.5 2,800.7 Bonds(d) 58.6 228.5 1,063.7 Stocks 58.6 260.6 1,445.6 U.S.
While budget surpluses may be good news for the government, the growing scarcity of Treasury securities can wreak havoc for investors who have sought the safety of U.S. government securities
or who depend on them for income.
This is the sum of the nonmonetized portion of the SDR total ($10 billion SDRs minus $9.2 billion SDR certificates), the entry for U.S. government securities
with the Treasury ($15.7 billion), and the dollar value of the German mark and Japanese yen items ($13.9 billion).
Of particular interest in the premium bond area are pre-refunded bonds - short-term, tax-exempt municipal bonds which are backed by U.S. Government securities
. Pre-refunded bonds, because they trade at a premium, typically yield about 10 basis points more than AAA-rated general obligation bonds.
* Class II: Certificates of deposit, U.S. government securities
, readily marketable stocks and securities, and foreign currency.
The other 50 percent will be invested in U.S. government securities