NEW YORK (Reuters) - Wall Street's separation of interest and principal components of U.S. Treasury securities totaled $707 million in July, down more than 90 percent from $7.544 billion in June, according to Treasury Department data released on Thursday.
Bond dealers break apart, or "strip," these components for resale to investors who seek to receive a known payment on a specific future date.
These "Separate Trading of Registered Interest and Principal of Securities" (STRIPS), also known as zero-coupon securities, pay investors only when they mature.
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The stripping of longer-dated Treasuries totaled $599 million last month, down from $6.7 billion in June, which was the largest for these maturities since February 2013 amid intense global demand for longer-dated U.S. bonds.
Total STRIPS outstanding fell by $427 million in July with $1.13 billion of them retired, Treasury data showed.
(Reporting by Richard Leong; Editing by Leslie Adler)