Overseas investors net sellers in three months

By IVCPOST Staff Reporter

Jun 15, 2013 10:51 AM EDT

Foreign investors were net sellers long dated U.S. securities for the third month running, said the U.S. Treasury on Friday. The agency also said the foreign investors dumped government debts in April.

Selling was mostly focused in Treasury bonds and notes. This prompted a total acquisition of $54.5 billion from overseas investors, noted as the first net outflow within seven months. 

The private sector sold $30.8 billion, its biggest recorded one-month outflow.

Foreign investors sold a total of $37.3 billion in government securities, the biggest outflow in three years. March's outflow was adjusted marginally to a value of $13.4 billion.

"Demand for U.S. securities was much weaker in April," said U.S. strategist at TD Securities Gennadiy Goldberg. Talking about the European Union rescue, Goldberg commented that it is "somewhat surprising given the fresh bout of European uncertainty observed in the month."

Central banks were also net Treasury sellers in April.

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