The U.S. Department of the Treasury released Treasury International Capital (TIC) data for January on Mar. 18, reporting a net TIC outflow of $25.0 billion for the month. The next release, covering February data, is scheduled for April 15.
The TIC data are closely watched as they provide insight into cross-border financial flows and foreign ownership of U.S. securities, which can influence financial markets and economic policy decisions.
According to the report, net foreign private outflows totaled $76.1 billion in January, while net foreign official inflows were $51.1 billion. Foreign residents increased their holdings of long-term U.S. securities by $63.5 billion, with private investors accounting for $42.0 billion and official institutions for $21.4 billion in net purchases.
U.S. residents also increased their holdings of long-term foreign securities with net purchases amounting to $47.9 billion during the same period. After adjustments such as estimated foreign portfolio acquisitions through stock swaps, overall net foreign purchases of long-term securities were estimated at $15.5 billion in January.
Foreign residents reduced their holdings of U.S. Treasury bills by $10.2 billion but increased their holdings of all dollar-denominated short-term U.S. securities and other custody liabilities by $17.8 billion overall. Banks’ own net dollar-denominated liabilities to foreign residents decreased by $58.3 billion.
The Treasury noted that while monthly TIC data offer a window into foreign ownership of U.S. securities, there are limitations due to custodial arrangements and other factors that may obscure true ownership or miss certain assets held abroad.
