March Net Foreign Sales Of Long-Term US Securities $36.9 Billion
May 15 2009 - 9:34AM
Dow Jones News
Net foreign purchases of long-maturity U.S. securities totaled
$36.9 billion in March, following purchases of $5.4 billion the
month before, according to a U.S. Treasury Department report
released Friday.
The monthly Treasury report highlights cross-border acquisitions
of securities with maturities of more than one year, including
non-market transactions such as stock swaps and principal repayment
on asset-backed securities.
The closely watched figure, excluding transactions that don't
occur on an open market, recorded net purchases of $55.8 billion in
long-term U.S. securities, after purchases of $22.0 billion in
February, according to the monthly Treasury International Capital
report, known as TIC.
The report's most comprehensive category, "monthly net TIC
flows," includes non-market flows, short-term securities and
changes in banks' dollar holdings. This measure of net foreign
capital inflow was $23.2 billion in March, versus an outflow of
$91.1 billion the previous month.
Financial market analysts consider the monthly data from the
Treasury Department to be a significant but imprecise gauge of how
easily the U.S. can finance its trade deficit. The February TIC
flow compares with the $27.58 billion trade deficit during the
month.
Within the long-term securities category, foreign net purchases
of U.S. Treasury notes and bonds totaled $55.3 billion in March,
compared with net purchases of $21.6 billion the month before.
Private foreign investors bought a net $26.7 billion in Treasury
notes and bonds in March, after buying $23.6 billion in February.
Meanwhile, foreign official institutions such as central banks
bought a net $29.0 billion of these Treasurys, compared with net
sales of $2.0 billion the month before.
Net foreign sales of debt issued by U.S. government-sponsored
agencies like Fannie Mae (FNM) and Freddie Mac (FRE) totaled $15.6
billion in March, compared with $1.1 billion in purchases in
February.
For U.S. equities, net foreign purchases totaled $13.2 billion
in March, compared with sales of $5.1 billion the previous
month.
For corporate bonds, net foreign purchases were $3.5 billion,
versus purchases totaling $3.3 billion the previous month.
China remained the largest holder of U.S. Treasury securities,
having surpassed Japan late last year. China increased its holdings
to $767.9 billion in March. Japan, the second-largest holder of
U.S. Treasurys, increased its holdings to $686.7 billion.
The TICs data, typically released around the 11th business day
of the month, can be found on the Treasury's Web site at:
http://www.treas.gov/tic. With each monthly release, Treasury
revises the previous month's data as well.
The next report, covering April, is scheduled for release June
15.
-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9275;