Net inflows of capital into US assets in March fell more than expected to $45.7 billion, a government report showed today.
This fell short of the amount needed to cover the US trade deficit of $55.0 billion in the month. Analysts were expecting inflows of between $65 billion and $75 billion.
Financial markets watch the report as a measure of foreigners' appetite for US assets.
It was the lowest since net inflows of $26.5 billion in October 2003, the Treasury Department said.
Foreign official institutions such as central banks were net sellers of US Treasuries for the first time since August 2003, the report showed.
Overall net inflows of capital narrowed from a revised $84.1 billion in February, which was originally reported as $84.5 billion, according to the Treasury International Capital Data report.
Inflows were just short of offsetting the monthly US trade deficit in March, which was below forecasts on a drop in imports from China and strong US exports.
The trade deficit is by far the largest component of the current account deficit. All foreign purchases of US Treasuries slipped to $27.91 billion in March from $42.51 billion in February as private buyers increased purchases.