WASHINGTON (AFX) - Foreigners bought a net $46.7 billion in U.S. securities
in April, the lowest level in more than a year, according to the latest data
from the Treasury Department released Thursday.
April's buying was down 34 percent from March's foreign net purchases of
U.S. securities at $70.4 billion, previously reported as $69.8 billion, the
Treasury said in its monthly international capital report.
April's net foreign purchases were the lowest level since March 2005 at
$41.5 billion.
The April figure was also well below Wall Street expectations. A survey of
five banks by Dow Jones Newswires put the net figure at $70.6 billion during
April.
The monthly Treasury report on international capital is considered a rough
signal about capital flows. The data are limited by their exclusion of
cross-border flows through short-term debt instruments, foreign direct
investment and stock swaps.
In addition to Treasurys, the report's overall net monthly figure includes
foreign holdings of the debt of government agencies like Fannie Mae and Freddie
Mac, U.S. stocks and U.S. corporate bonds. It also factors in the effect of
foreign securities sold to and bought from U.S. investors.
Net foreign buying of U.S. securities in April was less than the reported
U.S. trade deficit for the month of $63.5 billion, though analysts say the
Treasury Department's monthly data and the trade deficit make for an imperfect
comparison.
Foreign net purchases of U.S. Treasury notes and bonds rose in April,
totaling $3.3 billion compared with $3.1 billion the previous month, Treasury
said.
Within the foreign purchases of Treasury notes and bonds, private foreign
investors sold a net $7.8 billion in April, after making net purchases of $9.7
billion the previous month.
Foreign official institutions bought a net $10.7 billion of Treasury notes
and bonds in April, compared with net sales of $6.3 billion in March.
Net foreign purchases of U.S. agency debt totaled $15.3 billion in April,
down from $19.0 billion in net purchases in March.
For U.S. equities, net foreign purchases totaled $6.5 billion in April, down
from $19.0 billion in net purchases the previous month. April's foreign
purchases of U.S. equities was the lowest level since November 2005, at $4.9
billion, according to the Treasury.
There were net foreign purchases of $33.3 billion in corporate bonds in
April, down from $48.4 billion in March.
Net foreign equities and bonds purchased by U.S. residents -- which affects
the overall net inflow figure -- was $11.9 billion in April, down from $19.1
billion the previous month.
Total foreign holdings of Treasury bills, notes and bonds was $2.067
trillion in April, the report said. This was down from $2.082 trillion in March.
Foreign official holdings of Treasury bills, notes and bonds fell to $1.312
trillion in April from $1.320 trillion the month before.
Japan remained the largest holder of U.S. Treasury securities, with its
holdings rising in April to $639.2 billion from $637.3 billion in March.
China remained the second-largest holder of U.S. Treasurys, with its stake
rising to $323.2 billion from $321.2 billion the previous month.
Britain remained in third place as its holdings fell to $166.8 billion from
$179.2 billion.
Treasury holdings in Caribbean banking centers, which are associated with
investment funds, fell to $61.0 billion from $61.6 billion.
Treasury holdings by "oil exporters" -- a category comprising mainly members
of the Organization of Petroleum Exporting Countries -- rose to $99.1 billion
from $98.0 billion the previous month.
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