U.S. TIC long term purchases rise significantly less-than-expected

Published 08/15/2011, 09:08 AM
EUR/USD
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Investing.com – U.S. Treasury International Capital purchases rose significantly less-than-expected in June, official data showed on Monday.

In a report, the U.S. Department of the Treasury said that net foreign purchases of long-term securities totaled USD3.7 billion in June, significantly below expectations of USD30.1 billion.

The previous month’s figure was revised up to USD24.2 billion from a previously reported USD23.6 billion.

According to the data, foreign investors sold USD18.3 billion in U.S. Treasuries in June, the most since June 2000. The declines were concentrated in Luxembourg and the Cayman Islands, suggesting private funds were doing the selling.

Official demand for U.S. Treasuries increased in June, while data also showed that China’s holdings of U.S. Treasuries rose during the month.

Following the release of the data, the U.S. dollar was down against the euro, with EUR/USD jumping 0.94% to trade at 1.4383.

Meanwhile, the outlook for U.S. equity markets was upbeat. The Dow Jones Industrial Average futures pointed to a gain of 0.65%, S&P 500 futures indicated an increase of 0.65%, while the Nasdaq 100 futures added 0.25%.

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