Treasury International Capital - September 2008

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International Capital Flows At a Glance

Foreign purchases of Long Term US Securities: $30.9 billion
Official purchases: -$4.8 billion
Private purchases: $35.7 billion
US residents purchase of foreign long term securities: sold $35.4 billion
Monthly Net TIC flows: $143.4 billion

Technorati Tags: International Capital Flows, Treasury Department

Treasury International Capital (TIC) Data for September
Treasury International Capital (TIC) data for September 2008 are released today and posted on the U.S. Treasury website (www.treas.gov/tic). The next release, which will report on data for October, is scheduled for December 15, 2008.
Net foreign purchases of long-term securities were $66.2 billion.
Net foreign purchases of long-term U.S. securities were $30.9 billion. Of this, net purchases by private foreign investors were $35.7 billion, and net purchases by foreign official institutions were negative $4.8 billion.
U.S. residents sold a net $35.4 billion of long-term foreign securities.
Net foreign acquisition of long-term securities, taking into account adjustments, is estimated to have been $52.7 billion.
Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities increased $11.6 billion. Foreign holdings of Treasury bills increased $89.9 billion.
Banks’ own net dollar-denominated liabilities to foreign residents increased $79.1 billion.
Monthly net TIC flows were $143.4 billion. Of this, net foreign private flows were $126.9 billion, and net foreign official flows were $16.4 billion.
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TIC Monthly Reports on Cross-Border Financial Flows

(Billions of dollars, not seasonally adjusted)

12 Months Through

2006
2007
Sep-07
Sep-08
Jun-08
Jul-08
Aug-08
Sep-08

Foreigners’ Acquisitions of Long-term Securities

Gross Purchases of Domestic U.S. Securities
21077.1
29730.6
27463.7
33067.9
2794.1
2819.5
2163.9
3082.2
2

Gross Sales of Domestic U.S. Securities
19933.9
28714.7
26429.8
32276.2
2731.4
2835.2
2165.5
3051.4
3

Domestic Securities Purchased, net (line 1 less line 2) /1
1143.2
1015.9
1033.9
791.7
62.7
-15.7
-1.6
30.9

Private, net /2
946.6
828.2
860.2
561.7
47.8
-10.9
8.7
35.7
5

Treasury Bonds & Notes, net
125.9
197.9
178.7
269.9
27.2
24.2
29.9
15.8
6

Gov’t Agency Bonds, net
193.8
107.0
121.5
102.1
22.3
-23.9
-9.0
14.8
7

Corporate Bonds, net
482.2
342.8
409.0
116.8
0.6
-4.3
-12.6
-6.4
8

Equities, net
144.6
180.4
150.9
72.9
-2.3
-6.8
0.4
11.5

Official, net /3
196.6
187.7
173.7
230.0
14.9
-4.9
-10.2
-4.8
10

Treasury Bonds & Notes, net
69.6
3.0
13.2
115.4
1.1
10.1
4.8
4.9
11

Gov’t Agency Bonds, net
92.6
119.1
123.6
29.9
9.1
-16.2
-13.1
-8.7
12

Corporate Bonds, net
28.6
50.6
38.1
52.2
4.1
0.2
-0.5
-1.2
13

Equities, net
5.8
15.1
-1.2
32.6
0.5
1.1
-1.4
0.0

Gross Purchases of Foreign Securities from U.S. Residents
5515.9
8187.6
7581.0
8428.6
688.3
719.4
585.5
710.0
15

Gross Sales of Foreign Securities to U.S. Residents
5766.8
8411.9
7909.2
8388.6
698.2
685.2
562.9
674.6
16

Foreign Securities Purchased, net (line 14 less line 15) /4
-250.9
-224.3
-328.2
40.0
-10.0
34.2
22.5
35.4

Foreign Bonds Purchased, net
-144.5
-129.0
-169.2
48.4
-11.5
17.3
19.7
37.8
18

Foreign Equities Purchased, net
-106.5
-95.3
-159.0
-8.4
1.6
16.9
2.9
-2.4

Net Long-Term Securities Transactions (line 3 plus line 16):
892.3
791.6
705.7
831.6
52.7
18.4
21.0
66.2

Other Acquisitions of Long-term Securities, net /5
-174.6
-235.1
-238.3
-210.1
-18.8
-14.5
-12.9
-13.5

Net Foreign Acquisition of Long-Term Securities

(lines 19 and 20):
717.7
556.5
467.4
621.5
33.9
3.9
8.1
52.7

Increase in Foreign Holdings of Dollar-denominated Short-term

U.S. Securities and Other Custody Liabilities: /6
146.2
198.6
126.5
191.1
-30.6
15.8
22.1
11.6
23

U.S. Treasury Bills
-9.0
49.2
17.7
239.9
6.5
4.2
30.6
89.9
24

Private, net
16.1
29.7
18.8
141.4
-0.2
-1.6
17.5
58.7
25

Official, net
-25.0
19.5
-1.1
98.5
6.6
5.8
13.1
31.2
26

Other Negotiable Instruments

and Selected Other Liabilities: /7
155.1
149.4
108.9
-48.8
-37.1
11.5
-8.5
-78.3
27

Private, net
174.9
73.2
77.8
-47.8
-39.1
5.1
-0.4
-70.0
28

Official, net
-19.8
76.1
31.1
-1.0
2.0
6.4
-8.1
-8.4

Change in Banks’ Own Net Dollar-Denominated Liabilities
198.0
-122.9
-60.6
-320.1
10.1
-44.8
-8.8
79.1

30
Monthly Net TIC Flows (lines 21,22,29) /8
1061.8
632.3
533.4
492.5
13.3
-25.1
21.4
143.4

of which

Private, net
923.0
345.2
351.5
190.8
0.3
-43.4
24.1
126.9
32

Official, net
138.9
287.1
181.9
301.7
13.0
18.3
-2.7
16.4

Net foreign purchases of U.S. securities (+)

Includes international and regional organizations

The reported division of net purchases of long-term securities between net purchases by foreign official institutions and net purchases

of other foreign investors is subject to a “transaction bias” described in Frequently Asked Questions 7 and 10.a.4 on the TIC website.
/4

Net transactions in foreign securities by U.S. residents. Foreign purchases of foreign securities = U.S. sales of foreign securities to foreigners.

Thus negative entries indicate net U.S. purchases of foreign securities, or an outflow of capital from the United States; positive entries

indicate net U.S. sales of foreign securities.

Minus estimated unrecorded principal repayments to foreigners on domestic corporate and agency asset-backed securities +

estimated foreign acquisitions of U.S. equity through stock swaps -

estimated U.S. acquisitions of foreign equity through stock swaps +

increase in nonmarketable Treasury Bonds and Notes Issued to Official Institutions and Other Residents of Foreign Countries.

These are primarily data on monthly changes in banks’ and broker/dealers’ custody liabilities. Data on custody claims are collected

quarterly and published in the Treasury Bulletin and the TIC website.

“Selected Other Liabilities” are primarily the foreign liabilities of U.S. customers that are managed by U.S. banks or broker/dealers.

TIC data cover most components of international financial flows, but do not include data on direct investment flows, which are collected

and published by the Department of Commerce’s Bureau of Economic Analysis. In addition to the monthly data summarized here, the

TIC collects quarterly data on some banking and nonbanking assets and liabilities. Frequently Asked Question 1 on the TIC website

describes the scope of TIC data collection.

Source: Department of Treasury

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