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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

AUD/USD drops back towards 0.6200 on RBA's FSR

Australian dollar ran through fresh offers on the RBA’s Financial Stability Review (FSR), as it highlighted the elevated risks to the economy due to the coronavirus outbreak. AUD/USD drops sharply towards 0.6200, having faced rejection near 0.6250. 


USD/JPY holds in neutral territory awaiting Fed's Powell

USD/JPY has been holding in consolidation and ranged sideways between 108.60 and 109.10 overnight. Fed's Powell and US jobs will be the final scheduled catalysts for the holiday-shortened week.


WTI: On the front foot above weekly resistance-turned-support

WTI nears the weekly top after breaking the short-term resistance line, now support. A sustained run-up could aim to fill the March month’s gap. 50% Fibonacci retracement, 200-HMA restrict near-term declines.

Oil News

Gold is consolidated in the $1640s in wind-down markets ahead of Fed's Powell

The markets are quieter in Asia following a strong performance on Wall Street with US stocks bouncing back from the prior session's lows. Gold has moved into consolidation between $1,647.60 and $1,650.

Gold News

What to expect from OPEC and G20

Equities and currencies traded higher today after Dr. Fauci, the US’ Director of National Institute of Allergy and Infectious Diseases said there could be a COVID-19 turnaround next week.

Read more