Foreign demand for U.S. assets softens in June (by Greg Robb)

WASHINGTON (MarketWatch) -- Foreign investors bought a net $5.5 billion of long-term U.S. securities in June, down from the $50.9 billion purchased in the prior month, Treasury Department data released Wednesday showed. In the key Treasury sector, overseas investors were net buyers of $32.5 billion in June, down from net purchases of $45.9 billion in May. They were net sellers of $600 million of government agency bonds in June compared with purchases of $12.4 billion in May. International investors were net sellers of corporate bonds in June. They purchased a net $4.3 billion of U.S. equities in the month. Taking into account purchases by U.S. residents and overseas investors, the net foreign purchases of long-term securities was $9.3 billion in June, down sharply from $55.9 billion in May. According to the data, China-based investors slightly increased their holdings of U.S. Treasurys in June.