Monday, December 15, 2008

October TIC Data

Below is this month’s TIC report, reflcting data from October. The Treasury International Capital (TIC) reflects the net inflow or outflow of money to or from the United States. We need it to be positive by about $60 billion per month to finance our deficits/negative trade. It has come in negative a couple of months in the past year and was only slightly positive in this report. This is foreign investors saying that they are unwilling, or not capable, of supporting our debts further.

If this capital flow deteriorates further, it will force the hand of the bond market and our government.


December 15, 2008

Treasury International Capital (TIC) Data for October

Treasury International Capital (TIC) data for October 2008 are released today and posted on the U.S. Treasury website ( The next release, which will report on data for November, is scheduled for January 16, 2009.

Net foreign purchases of long-term securities were $1.5 billion.

Net foreign purchases of long-term U.S. securities were negative $34.8 billion. Of this, net purchases by private foreign investors were negative $17.5 billion, and net purchases by foreign official institutions were negative $17.2 billion.
U.S. residents sold a net $36.3 billion of long-term foreign securities.
Net foreign acquisition of long-term securities, taking into account adjustments, is estimated to have been negative $13.3 billion.

Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities increased $92.4 billion. Foreign holdings of Treasury bills increased $147.4 billion.

Banks’ own net dollar-denominated liabilities to foreign residents increased $207.3 billion.

Monthly net TIC flows were $286.3 billion. Of this, net foreign private flows were $274.5 billion, and net foreign official flows were $11.9 billion.