Foreign investment in U.S. assets rebounded sharply in June, the Treasury Department announced today. Net capital inflows totaled $71.8 billion, up from $65.2 billion in May and the first gain since January. A narrower measure, excluding transactions between U.S. residents and foreigners in foreign stocks and bonds, showed a larger June rebound in inflows to $85.5 billion from $62.4 billion the previous month. According to the report, foreigners' net buying of U.S. Treasury bonds and notes rose to $40.6 billion from $29.2 billion in May. Foreign demand for U.S. corporate debt also rose in June, moving to $27.1 billion from $20.3 billion the previous month. Foreign investors also came back to U.S. stocks after being net sellers for three months, buying a net $1.9 billion in June compared to May's net sales of $7.7 billion.
