Highlights
Net foreign purchases of long-term U.S. securities totaled a whopping $126.1 billion in May vs. an already hefty $80.3 billion in April. Foreign demand, centered among private holders not institutions, was incredibly strong across categories, especially equities where net purchases totaled $41.9 billion. Demand for U.S. corporate & other bonds was also incredibly strong at a net $72.6 billion. Demand for Treasuries and agency bonds, the staple diet of foreign investors, was solid but unspectacular at $21.6 billion and $27.5 billion.

Interestingly demand from China remains weak, at a net -$6.6 billion vs. $-5.8 billion in April. Demand from Japan was also soft, at a net $0.4 billion. But demand from UK financial institutions, which often reflect general global demand from UK customers, was very strong at $33.1 billion. Demand from oil exporters was also strong at $9.1 billion. Brazil, Canada and Russia were also strong buyers.

Few conclusions if any should ever be drawn from one month's data, but today's report is clearly a positive for U.S. assets, as the headline total covers roughly two months of the nation's trade outflow. Immediate reaction to the report was not significant, but expect all U.S. markets, especially the dollar, to get a lift through the session.

2007 Release Schedule

Released On: 1/17 2/15 3/15 4/16 5/15 6/15 7/17 8/15 9/18 10/16 11/16 12/17 Released For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct