US: TIC flows fall in April, but remain above expectations

FXstreet.com (Barcelona) – April Long-term net TIC flows totaled $83.0 billion, down from March’s $140.5 billion but still far shy of market expectations of $77.3 billion.

Net purchases by private foreign investors were $93.3 billion, and net purchases by foreign official institutions were $17.5 billion. U.S. residents purchased a net $27.8 billion of long-term foreign securities. Foreign holdings of short term US-denominated assets increased $1.5 billion, while foreign holdings of treasury bills decreased $3.6 billion.

The TIC Flows are released by the US Department of Treasury. The TIC, or Treasury International Capital, is a US government database which registers all major capital flows in and out of the United States with the exception of foreign direct investment (FDI). TIC data is sent to the Bureau of Economic Analysis and used for the Trade Balance data release. The TIC flows has become a major event in the market, as it is viewed as a measure of foreign demand for the USD and USD-denominated assets. Generally speaking, a high reading is bullish for the USD, while a low reading is bearish