Foreign purchases of long-term U.S. securities reversed direction in September, growing $25.5 billion after being down $9.8 billion in August. Monthly net TIC Flows were -$106.8 billion versus -$13.8 billion in August.
Private Treasury Purchases Hold Their Ground
- After an increase of only $0.1 billion in August, domestic purchases of Treasuries by the private sector surged to $51.0 billion in September.
- However, in September, official sources continued to sell Treasuries. This time, foreign official sources sold $23.2 billion in Treasury notes, the fourth consecutive drop from official sources.
Net Long-Term Flow in Positive Territory Again
- Appetite for U.S. securities was positive once again in September, this time by $25.5 billion versus a drop of $9.8 billion in August. However, this was only the second positive net long term flow in the past eight months.
- Meanwhile, banks’ own net dollar denominated liabilities plunged $90.7 billion, pushing monthly net TIC flows to -$106.8 billion for the month.
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