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U.S. TIC long term purchases rise more-than-expected

Published 03/15/2012, 09:23 AM
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Investing.com - U.S. Treasury International Capital rose significantly more-than-expected in January, as foreign residents increased their holdings of long-term U.S. securities, official data showed on Thursday.

In a report, the U.S. Department of the Treasury said that net foreign purchases of long-term securities totaled USD101.0 billion in January, up from purchases of USD19.1 billion in December, whose figure was revised up from a previously reported USD17.9 billion.

Analysts had expected Treasury International Capital purchases to rise to USD29.3 billion in January.

Foreign residents increased their holdings of long-term U.S. securities in January, as net purchases totaled USD94.7 billion. Net purchases by private foreign investors were USD60.8 billion and net purchases by foreign official institutions were USD34.0 billion.

At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of USD6.3 billion.

Taking into account transactions in both foreign and U.S. securities, the net foreign purchases of long-term securities were USD101.0 billion.

According to the data, Japan’s purchases totaled USD20.8 billion, significantly higher than the USD3.5 billion in the preceding month.

The U.K. bought USD29.9 billion of U.S. Treasuries, after selling USD11.1 billion in December.

China purchased USD7.6 billion in U.S. Treasuries in January, after offloading USD3195 billion in the preceding month.

Following the release of the data, the U.S. dollar remained lower against the euro, with EUR/USD edging up 0.18% to trade at 1.3055.

Meanwhile, U.S. stock future indices held on to gains after the release of the data. The Dow Jones Industrial Average futures pointed to an increase of 0.15%, S&P 500 futures pointed to a gain of 0.2%, while the Nasdaq 100 futures pointed to a rise of 0.25%.  

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