US DATA: Aug TICS data show a huge increase in flows to the US, but
about 3/4 of this appears to be trading-related as bonds rallied and the
Street embraced idea of more QE. Net foreign purchases of long-term US
securities were $128.7b, about double the July pace, as foreign bought
$136.6b ($113.1b private in a very strong showing and $23.5b official),
and US residents bought $7.9b foreign securities. Monthly net TIC flows
were $38.9b. Foreign bought $117.1b long-term Tsys vs +$30b in July, and
foreign holdings of short-term debt +$29.7b ($29.1b alone in T-bills).
In Tsys, country data show China +$21.7b, Japan +$15.6b, UK +$74.1b,
OPEC +$2.8b, and Carib centers +8.4b.