TIC: Foreign Purchases of U.S. Securities Rev Up in January

Treasury International Capital (TIC) data showed that net foreign purchases of short- and long-term U.S. securities surged by $110.4 billion in January, led by a jump in net foreign private inflows. 

Foreigners Purchasing U.S. Securities

• A net purchase of $110.4 billion of U.S. securities was made by foreigners in January. Private foreign investors purchased $144.1 billion, while foreign officials sold $33.6 billion.
• Among the various financial instruments purchased, Treasuries were the most popular with net foreign private purchases of $37.9 billion. Corporate bonds and Government Agency bonds also saw net inflows and only equities saw net outflows. 

U.S. Residents Have an Appetite For Foreign Securities

• Reversing trend, U.S. residents were net purchasers in January, increasing their holdings of foreign securities by $8.4 billion— the first increase in eight months.
• Foreign ownership of long-term U.S. securities saw some movement as Japan’s Treasury holdings rose by $11.7 billion, maintaining its spot as the largest holder of U.S. Treasury debt. China, while elevated, sold $7.3 billion of their U.S. holdings.

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