US DATA: Q2 Flow of Funds show dom. nonfinancial debt +3.0% SAAR vs
+1.9% in Q1 as business (via corp bonds and loans) and federal debt
accelerated. HH (mainly in mtgs) and S&L debt continued to drop.
Household net worth was $58.5T, about $150b less than at the end of Q1.
Data on Tsys show $826b net issuance SAAR, of which foreign CB’s bought
$1.074T vs households divesting $439b and banks divesting $105b.
Pension funds ($79.3b), life insurers ($10.1b), Mutual funds ($34.7b)
and MMFs ($21.9b) were buyers.