Key facts
- Foreign investors bought a net $132 billion of U.S. securities in May.
- Net long-term purchases by foreigners over the past 12 months totaled $1.33 trillion.
- Foreigners bought $134 billion of U.S. equities in May.
- Holdings of U.S. Treasury bills decreased by $43.5 billion.
- Net purchases of longer-term Treasury securities were $56.6 billion in May.
Foreign investors were net buyers of $132 billion of U.S. securities in May, according to the Treasury Department's monthly Treasury International Capital report. This inflow brings the total net long-term purchases by foreigners to $1.33 trillion over the past 12 months.
In May, foreigners bought $134 billion of U.S. equities, contributing to a $909 billion net purchase in that sector over the past year, a period marked by a strong bull market in U.S. stocks. However, foreign residents reduced their holdings of U.S. Treasury bills by $43.5 billion. This decrease may draw attention amid market focus on U.S. inflation and its implications for Federal Reserve interest rate policy.
Net purchases of longer-term Treasury securities amounted to $56.6 billion for the month, with such purchases totaling $290 billion over the past 12 months. Overseas purchases of corporate bonds reached $52.5 billion in May and $449 billion over the preceding 12 months.