Net flows of capital into the United States fell to a much smaller-than-expected $32.9 billion in July, a Treasury Department report showed today.
Analysts were expecting net capital flows of $70 billion. The US trade deficit was a record $68 billion in July as record oil prices pushed the US monthly oil import bill to the highest on record.
It was the lowest level of net inflows since May 2005, when inflows were $26.9 billion, a Treasury Department spokeswoman said.
US Treasury debt prices extended losses after data, and the dollar fell against the euro and the yen.
Official sources were net buyers of $22.7 billion in US assets in July. Official sources were net buyers of $8.2 billion in US Treasury bonds and notes in the month.
Private sources were net buyers of $31.8 billion in US assets in July. It was the lowest level of private buying of US assets since May 2005, a Treasury official said.
Private sources sold $1.7 billion in Treasuries in the month. Net purchases of Treasuries dipped to $6.6 billion in the month, the lowest level of buying since April.