Net foreign purchases of long-term U.S. securities were -$8.8 billion. Of this, net purchases by foreign official institutions were -$10.2 billion, and net purchases by private foreign investors were $1.5 billion.
In December, that number stood at $69.1 billion.
Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities increased $7.6 billion. Foreign holdings of Treasury bills increased $20.6 billion.
Monthly net treasury international capital flows were negative 0.4 billion. Of this, net foreign private flows were $3.5 billion, and net foreign official flows were negative $3.9 billion.
In a nutshell, foreigners are not stockpiling on short and long-term US securities as they have been for years. Treasury Bonds and notes have been quite popular with private foreign investors and official institutions, though, as flows were a positive $30.8 billion in the month of August. This may have been a result of flight-to-quality and risk aversion. US equity purchases were down $1 billion for the month between both private and public investors.
Year-over-year, net foreign purchases of long-term US securities stood at $798 billion, less than the $1 trillion plateau we have been accustomed to. This number is likely to fall even further as the volatile months of September and October are not accounted for.
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