U.S. capital flows fall in September

Monthly capital flows to the U.S. fell by $14.7 billion in September, marking the second consecutive decline. Official institutions, including central banks, bought $14.6 billion in Treasury bonds in September, after shedding $29.7 billion in August. Private investors purchased $11.6 billion in Treasury bonds and notes, far short of the $26.9 billion in notes that were purchased in August. Japan and China — the two largest holders of Treasury securities — held less in September than in August. Japan held $582.2 billion in Treasury Securities, down from $585.6 billion in August. Chinese holdings fell to $396.7 billion from $400.2 billion in August. Stateside, the Federal Reserve reported that industrial production fell 0.5% in October, marking the largest amount since January, after it increased 0.2% in September. Industrial production in October increased 1.8% compared to the year-ago period. The output of consumer goods fell 0.7% in October, following a decline of 0.2% in September. Manufacturing output fell 0.4% in October, following an increase of 0.2% the previous month.