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Treasury International Capital
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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. Why Investors Care
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| Released on
5/15/08
For
Mar 2008 |
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Foreign Demand for Long-Term U.S. Securities
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| Actual |
$80.4B
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| Previous |
$
72.5
B
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Highlights
The net inflow of long-term securities rose to $80.4 billion in March vs. $64.9 billion in February to indicate strengthening foreign demand for U.S. financial assets. Demand was especially strong for Treasuries but also equities too, the latter showing an $11.5 billion net inflow that is up from the prior month and extending a very respectable run.
Chinese and Japanese holdings of U.S. securities both increased as did holdings by U.K. banks and their customers. Purchases by central banks were a bit greater than the still solid level of purchases by private investors. Foreigners were sellers of corporate bonds and only light buyers of agency bonds, both reflecting lack of confidence in the credit markets.
There was no immediate reaction to the results which are a surprise given weakness in the dollar which eats into yields for foreign investors. Foreign demand for U.S. securities is vital for the economic outlook especially given the rise underway in nation's fiscal deficit.
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