Foreigners sold long-dated U.S. securities for a second straight month in December, selling almost all asset classes except Treasuries, data from the U.S. Treasury showed on Tuesday.
U.S. Treasurys posted a net inflow of $17.9 billion in the month after sales of $127 million in November. However, all the other assets showed outflows.
Overseas investors sold equities to the tune of $13.7 billion, up from sales of $7.9 billion the previous month. Agency debt also sold off, with outflows of $15.4 billion, while corporate bond outflows amounted to $7.5 billion.
"The U.S. has been struggling to attract sufficient foreign investments to offset U.S. investments in foreign securities," said Michael Woolfolk, global market strategist at BNY Mellon in New York.
"This has uncovered the deficit in the U.S. current account and the U.S. net foreign direct investment positions leading to a balance of payments deficit and ultimately a weaker dollar."
In total, foreigners sold $45.9 billion in long-term U.S. assets in December, compared with outflows of $28.05 billion the previous month.
Including short-dated assets such as bills, overseas investors sold $119.6 billion, compared with outflows of $13 billion the prior month.