Highlights
Net foreign purchases of long term securities jumped to $115.1 billion in April from an already solid $79.6 billion in March. Gains were centered where they should be in private purchases of U.S. securities, a doubling in the month to a net $63.5 billion. Foreign demand was strongest for U.S. Treasuries showing a net jump of $80.3 billion with gains centered in China. There was active buying in agencies at a net $15.3 billion and reflecting the month's heavy supply in the sector. Net inflow in corporate & other bonds was a solid $25.1 billion.

Definitely on the weak side, however, was demand for U.S. equities, showing a net outflow of $15.9 billion in what would be the worst result since a $40.6 billion outflow during the market squeeze of August. But the outflow from the stock market, though severe, can't take the shine off of demand for Treasuries and U.S. credit instruments in general. The decline in the dollar has had remarkably little impact on foreign demand for U.S. securities, which is a big plus for the economic outlook given the spike underway in the fiscal deficit and the need for foreign capital to fund it. The dollar firmed slightly in reaction to the report which also is a big plus for the Treasury market.

2008 Release Schedule

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