Foreign accounts, at $34.8 billion, were active buyers of long-term U.S. securities in November while U.S. accounts, at $22.7 billion, were active sellers of long-term foreign securities, together making for monthly asset inflow of $57.5 billion.
Foreign buying of U.S. equities has been unusually heavy, at $12.7 billion for a third straight rise. Foreigners have also been heavy sellers of U.S. Treasuries of late, at a net $18.8 billion in the month. The heaviest foreign buying in November was in corporate bonds, at $28.7 billion. Buying of agency bonds was also solid, at $12.2 billion.
Selling by U.S. accounts was concentrated in foreign bonds, at $21.3 billion, with selling of foreign equities at $1.4 billion.
Turning to holdings of U.S. Treasuries, both Chinese and Japanese holdings continue to ease, down $12.6 billion in the month for China to $1.177 trillion and down $9.9 billion for Japan to $1.084 trillion. Ireland continues to hold the third spot at $328.7 million with the Cayman Islands in fourth at $269.4 billion.
Foreign demand for U.S. securities is a major plus for the economy, helping to offset the nation's large trade gap and government deficit.