TIC: Capital Inflow Driven by Private Foreign Investors

The Treasury International Capital report showed a net inflow of $65.8 billion of long-term portfolio capital into the U.S. in April. Net inflows from foreign private investors offset foreign officials’ modest outflow.

Foreign Investors Shed U.S. Treasuries

• A net purchase of $65.8 billion of U.S. securities was made by foreign investors in April. Foreign private buyers continued to have an appetite for U.S. securities, increasing holdings by $72.8 billion. Once again, foreign officials were net sellers, decreasing their holdings by $7.0 billion. However, both private and official foreign investors decreased their holdings of U.S. Treasuries by $16 billion and $6.6 billion, respectively.

Japan Sells off U.S. Treasuries but Keeps Top Spot

• Meanwhile, U.S. investors were net sellers on the month, decreasing their holdings of foreign securities by $2.7 billion.
• Japan and China are neck-and-neck as the top holder of U.S. Treasuries, with a difference of $14.7 billion. That said, Japan decreased its holdings by $12.4 billion in April, remaining the top holder of U.S. Treasuries, while China increased its holdings by $4.6 billion.

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