Foreigners were big sellers of U.S. Treasuries and U.S. equities in June, contributing to a net outflow of $36.5 billion in long-term securities. Foreign accounts, especially private accounts but also official accounts, sold a combined $48.6 billion of Treasuries in the month with China trimming back its holdings by $4.4 billion to $1.179 trillion and Japan by $18.4 billion to $1.030 trillion.
Foreign selling in the stock market has been heavy this year and June was another negative month, at a sizable outflow of $27.1 billion which came on top of a $26.6 billion outflow in May. Foreign accounts were, however, buyers of both government agency bonds, at $16.6 billion, and corporate bonds at $10.2 billion.
Trimming back the headline outflow was selling of foreign securities by U.S. accounts, at a net $9.0 billion with selling in bonds offsetting a small gain for foreign equities.
The nation's trade deficit and government deficit are always headline news and are usually offset to a degree by foreign buying of U.S. securities, though June is an unwelcome exception.