Foreign Demand for Treasuries Still Strong. Concerns Growing Though…

by devteam August 17th, 2009 | Share

Mixed news hit the markets half an hour before all three indexes opened down by more than 2% on Monday. The TIC flows report, which tracks the volume of investments flowing in and out of the country, showed a large inflow of capital in June, as appetite for Treasuries remained healthy, but total net flows showed a worse than expected outflow. 

The Good News: the Treasury International Capital report showed showed a huge net inflow of financial assets as the second quarter concluded, with $90.7 billion of financial assets entering the US in June, after sales of $19.4 billion in May.

Chinese holdings of Treasuries moved lower by $25 billion, which may be worrying if that becomes a trend, but other foreign demand advanced in the month, including in Japan, who expanded their holdings by $34 billion. In equities, the net gain was $19.1 billion, displaying that optimism for a US rebound isn’t just local.

The Bad News: monthly net TIC flows, a more comprehensive measure that includes non-market flows, short-term securities, and changes in banks' dollar holdings, reported  a net foreign capital outflow of $31.2 billion in the month â€

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...