Monthly capital flows to U.S. skyrocket in July
WASHINGTON (MarketWatch) -- Monthly capital flows to the U.S. shot up in July, to $103.8 billion from a revised $34.4 billion in June, with private foreign flows making up most of the gain, the Treasury Department reported Tuesday.
The monthly number includes Treasury bills and other short-term securities.
Net foreign private flows made up $65.4 billion of the monthly total, while net foreign official flows accounted for $38.4 billion.
Meanwhile, net foreign purchases of long-term U.S. securities were $24.7 billion for the month, falling back from $119.1 billion a month earlier.
Private investors' appetites for a variety of U.S. investments dropped off significantly in July.
Overall, they bought $20.3 billion in U.S. securities, down from $91.3 billion worth of those securities in June.
Private investors bought far fewer corporate and government agency bonds in July. They purchased $1.2 billion in agency bonds compared to $23.6 billion a month earlier, and $3.2 billion in corporate bonds compared to $22.2 billion in June.
Meanwhile, private investors sold off $2.4 billion in Treasury bonds and notes in July.
Central banks and other official institutions also bought fewer U.S. securities in July.
Overall, official institutions bought $4.4 billion in investments, down from the $27.8 billion they bought in June.
They sold $6.9 billion in Treasury bonds and notes. A month earlier, institutions had bought $6.4 billion in those same investments.
Chinese investors' holdings of Treasury securities rose in July after falling for three straight months. In July, Chinese investors held $407.8 billion in bonds and notes, compared to the $405.1 billion they held in June.
Japanese holdings of those same investments fell for the second consecutive month. Japan remained the largest holder of Treasury securities in July, with $610.9 billion. It was down from $613.2 billion in June.
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