Foreign investors' net purchases of agency MBS continued to trend upward in June, rising to $20.4 billion from $17.3 billion in May and $10.5 billion in April, according to a report by Credit Suisse analysts.But foreign investors on a net basis sold $2.2 billion in agency debt in June, a contrast to net purchases of $10.1 billion in May and $3.8 billion in April.
Chinese investors increased their net purchases of agency securities on a month-to-month basis in June. These investors bought $5.6 billion on a net basis during the month, up from $4.8 billion in May and $1.8 billion in April.
An increase in Japanese investors' net purchases of agency securities also was seen on a month-to-month basis in June, but it was only a slight jump compared to May and less than in April. These investors bought $5.7 billion in June compared to $5.6 billion in May and $7 billion in April.