NEW YORK, Sept 16 (Reuters) - Foreigners resumed purchases of U.S. securities in July, reversing the prior month's net outflow, and China and Japan both added to holdings of U.S. government debt, the U.S. Treasury Department said Thursday.
Overseas investors bought a net $63.7 billion, including short-term instruments such as Treasury bills. That was a sharp reversal from a revised net outflow of $5.2 billion in June. Treasury initially reported the June outflow at $6.7 billion.
Net long-term capital inflows also rose to $61.2 billion from $44.4 billion the prior month.
Foreigners poured back into equities and U.S. corporate debt in July after being net sellers of both in June.
China, the biggest holder of Treasury debt, increased its holdings by $3 billion while No. 2 Treasury holder Japan swelled its stash by $17.4 billion. (Reporting by Steven C. Johnson; Editing by James Dalgleish)