Highlights
Net foreign purchases of U.S. long-term securities were only $14.0 billion in August, reflecting steep sales of agencies. Net foreign sales of government agencies were $29.5 billion vs. July's even more severe $49.9 billion. Foreigners also sold U.S. corporate bonds, at $13.1 billion and up sharply from net sales of $4.2 billion in July. Foreign demand for equities fell in August, showing net sales of just under $1 billion, and is likely to show big declines in September and October.

But -- importantly -- foreigners were big buyers of long-term U.S. Treasuries, at a net $34.8 billion. China's share of foreign U.S. Treasury holdings held steady in the month at 19.4 percent while Japan's share jumped 6 tenths to 22.8 percent.

The data indicate that foreigners are selling U.S. securities other than Treasuries, a pattern that will likely be magnified in following reports. The funding of the nation's sky rocketing debt is dependent on foreign demand for our Treasuries. Money moved into the Treasury market following the results.

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