Foreign capital inflows are playing an important role in the . economy by bridging the gap between domestic supplies of and demand for capital. In 2008, as the financial crisis and global economic downturn unfolded, foreign investors looked to . Treasury securities as a “safe haven” investment, while they sharply reduced their net purchases of corporate stocks and bonds. In 2009, foreign capital inflows continued to drop as private investors sharply retrenched, while official purchases of . Treasury securities by foreign governments rose sharply. Foreign investors now hold more than 50% of the publicly held and traded . Treasury securities
