Foreigners Buying More Equities Than Treasuries

$32 billion was a far cry from the $68 billion that was anticipated by the markets in the Treasury's release. If you look at the charts, what was interesting to me is that foreigners bought more in equities than they did treasuries.

I thought that was interesting because the U.S. has a fairly large differential in their interest rates vs. other nations, yet the stock market had been fairly flat in the month of July.

Equities:

Bonds:

Total:

I think some are going to be quick in declaring the dollar "toast". Not so fast. This report was from the July timeframe. And, although we, as Americans, are still accruing a trade balance, the rest of the world may well have been in their summertime mood. Investor appetite in general typically wanes considerably, as this release shows, in the summertime. Also, if you look at the totals, the inflows are slightly ahead of the game, so to speak, in terms of totals. This doesn't lend much to the overall picture. But, the dollar is still being supported by the flows coming in.