Foreigners bought $132 billion of U.S. securities in May, Treasury says

By Colin Barr

NEW YORK, July 14 (Reuters) – Foreign investors bought a net $132 billion of U.S. securities in May, the Treasury Department said on Tuesday in its monthly Treasury International Capital report. 

The net inflow brings net long-term purchases by foreigners to $1.33 trillion for the last 12 months, Treasury said. Foreigners bought $134 billion of U.S. equities in the month, Treasury said, bringing the net foreign purchase in that sector over the past year to $909 billion — during a roaring bull market in U.S. stocks. 

Foreign residents decreased their holdings of U.S. Treasury bills by $43.5 billion, Treasury said — a figure that is likely to draw some scrutiny at a time when markets are focused on the U.S. inflation picture and what that likely means for the short-term interest rates set by the Federal Reserve.

Net purchases of longer-term Treasury securities were $56.6 billion, Treasury said, and longer-term Treasury purchases over the past 12 months were $290 billion. 

Overseas purchases of corporate bonds were $52.5 billion for the month and $449 billion for the past 12 months, Treasury said.

(Reporting by Colin Barr; Editing by David Gregorio)