Foreign inflows into US Treasuries in 2019 hit largest in 7 years

Foreign inflows into US Treasuries in 2019 hit their largest level in seven years, data from the US Treasury Department showed on Tuesday. 

Overall foreign inflows rose to $6.696 trillion in December, up about $425 billion from a year earlier. 

Japanese and Eurozone investors sought higher-yielding US government debt in a world of negative interest rates and their combined purchases accounted for half of foreign buying of Treasuries last year. 

Japanese investors bought $115 billion worth of US Treasuries, while Eurozone investors snapped up more than $100 billion worth of Treasuries.

With coronavirus outbreak and increased fears of Chinese and global growth slowdown, the high-yielding treasuries, especially at the long end of the curve (10-year), could continue to attract haven flows. 

As a result, the 10-year yield could fall below the two-year yield, inverting the curve. At press time, the 10-year yield is seen at 1.564% and the two-year yield is trading at 1.42%. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

GBP/USD hits three-month highs amid Brexit hopes

GBP/USD is rising toward 1.3450, the highest since September, shrugging off Brexit concerns. France may reportedly veto a deal if it sees too many compromises from the EU. The final US Services PMI, vaccine developments and US data are all awaited. 


EUR/USD resumes advance, reaches fresh highs

The EUR/USD pair is firmly advancing beyond 1.2100, trading at levels that were last seen in April 2018. The dollar is under pressure amid hopes for US fiscal stimulus and an upcoming vaccine. Investors are shrugging off Germany's extended restrictions.


XAU/USD clings to gains near $1840 area, over one-week tops

Gold maintained its bid tone through the mid-European session and was last seen trading near the top end of its daily range, or over one-week highs around the $1840 region.

Gold news

Crypto market relentlessly fighting for new yearly highs

Bitcoin is leading the recovery in the cryptocurrency market after reclaiming the position above $19,000. Ethereum has managed to bring down the critical hurdle at $600 while Ripple is holding slightly above $0.62.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info