Treasury’s purchases for LT securities much slower than consensus

Today the data on Treasury International Capital was released and it showed net foreign purchases of $11.2bn, a much lower figure than the consensus of $60bn.  The breakdown of the reported data is as follows:

Net foreign purchases of long-term U.S. securities were $34.3 billion – $18.3 billion was by private foreign investors,  while the rest was by foreign official institutions.  Out of the total, U.S. residents purchased a net $23.0bn.

The report also stated:

Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities decreased $39.4 billion. Foreign holdings of Treasury bills decreased $44.5 billion.

See the entire PDF report HERE.

I haven’t looked at all the data released but StreetInsider says all BRIC countries have reduced their holdings of US securities.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s