US DATA: Q3 Flow of Funds show dom nonfin’l debt +2.4% vs +5.1% in Q2, with the
slowing reflecting household debt paydown (home mtg debt contracted 3%) and S&L
debt -0.1%. HH net worth ended Q3 at $64.8T, a $1.7T gain over Q2 as stock
holdings expanded $800b and the value of real estate increased $370b. Data on US
Tsys show $691b net issuance SAAR, of which foreign bought $624b and MMFs
(+$81.8b) and pension (+$31.4b) and mutual funds (+$50.9b) got most of the rest.
HH’s, Fed, banks, and GSE’s divested.