Cross-border investment was flat in April with net purchases of U.S. long-term securities at only $1.8 billion for the lowest result of the year. Foreign accounts reduced their holdings by $0.8 billion in the month and were big sellers of U.S. Treasuries, at a net $22.6 billion, which offset buying of agency bonds, corporate bonds, and a fourth straight month of purchases of equities. U.S. accounts sold a net $2.7 billion in foreign long-term securities as demand for foreign equities offset selling of foreign bonds. There's been talk that Chinese accounts have been big buyers recently of U.S. Treasuries and they did increase their holdings in April, up slightly to $1.09 trillion. Japanese accounts continued to hold the most Treasuries in April, down slightly to $1.11 trillion. Foreign demand for U.S. securities is essential to offset the nation's large trade gap and government deficits.