| Actual | Previous | Revised | |
|---|---|---|---|
| Net Long-Term Securities Transactions | $126.1B | $3.3B | $3.4B |
Highlights
Foreign accounts were net buyers of U.S. long-term securities in November, increasing their holdings by a large $149.4 billion. Taking into account net sales of foreign long-term securities by U.S. accounts, at $23.3 billion, the net inflow for November came to $126.1 billion, compared with a revised inflow of $3.4 billion in October.
Net purchases of Treasury bonds and notes at $91.0 billion contributed to the rise in U.S. long-term holdings by foreign accounts, plus net purchases of U.S. corporate bonds, at $34.1 billion and government agency bonds, at $16.3 billion. There were also net purchases of U.S. equities by foreign accounts of $8.0 billion.
Among top foreign holders of U.S. Treasuries (long and short-term), Japanese accounts raised their holdings by $29.3 billion to $1,127.5 billion in November from $1,098.2 billion in October. Chinese accounts raised holdings by $12.4 billion to $782 billion from $769.6 billion in October. China's holdings have been trending lower and were at $870.3 billion in the year-ago month.
Net purchases of Treasury bonds and notes at $91.0 billion contributed to the rise in U.S. long-term holdings by foreign accounts, plus net purchases of U.S. corporate bonds, at $34.1 billion and government agency bonds, at $16.3 billion. There were also net purchases of U.S. equities by foreign accounts of $8.0 billion.
Among top foreign holders of U.S. Treasuries (long and short-term), Japanese accounts raised their holdings by $29.3 billion to $1,127.5 billion in November from $1,098.2 billion in October. Chinese accounts raised holdings by $12.4 billion to $782 billion from $769.6 billion in October. China's holdings have been trending lower and were at $870.3 billion in the year-ago month.
Definition
These Treasury data track the flows of financial instruments into and out of the United States. Instruments tracked include Treasury securities, agency securities, corporate bonds, and corporate equities.
Description
TIC data have been issued since the 1970s, but only recently, due to an enormous rise in foreign participation in our markets, have they grabbed the attention of the international financial markets. Although methodologically limited, TIC offers a measure of foreign demand for our debt and assets. Bonds and the dollar are most sensitive to the data, therefore bond and foreign exchange markets are more likely to react to this report than the equity market. Strong inflows (demand for U.S. securities) are needed to keep downward pressure on interest rates. Strong inflows also underpin the value of the dollar since foreigners must purchase dollars in order to buy our securities. A strong dollar helps to maintain stability in all U.S. financial markets. Since foreign ownership of U.S. equities is comparatively small, the equity market is less concerned about this report.
