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Business Times - 17 Aug 2009

US net overall capital outflows at US$31.2 bln

NEW YORK - Net overall capital outflows from the United States fell to US$31.2 billion in June, from the prior month's US$65.7 billion outflow though it was the third straight month of outflows, the Treasury said.

The trade deficit for June was US$27.01 billion.

Net long-term capital inflows rose to US$90.7 billion from a US$19.4 billion outflow the prior month, according to the Monday data.

Net purchases of US Treasuries added up to US$100.53 billion, up from US$22.55 billion in sales in May.

Private overall net outflow was reported at US$27.7 billion, down from an outflow of US$81.3 billion in May.

China decreased their US Treasury holdings, while Japan increased their holdings. China is the biggest foreign holder of US Treasury securities with Japan the second largest.

China's holdings fell to US$776.4 billion in June from US$801.5 billion in May. China's holdings in June were still larger than the US$763.5 billion in April and US$767.9 billion in March.

Japan's US Treasury holdings rose to US$711.8 billion in June from US$677.2 billion in May. -- REUTERS