The Treasury Department released its monthly report on cross-border financial flows for August today. Here is a quick recap-

Net foreign purchases of long-term U.S. securities were -$8.8 billion. Of this, net purchases by foreign official institutions were -$10.2 billion, and net purchases by private foreign investors were $1.5 billion.

In December, that number stood at $69.1 billion.

Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities increased $7.6 billion. Foreign holdings of Treasury bills increased $20.6 billion.

Monthly net treasury international capital flows were negative 0.4 billion. Of this, net foreign private flows were $3.5 billion, and net foreign official flows were negative $3.9 billion.

In a nutshell, foreigners are not stockpiling on short and long-term US securities as they have been for years. Treasury Bonds and notes have been quite popular with private foreign investors and official institutions, though, as flows were a positive $30.8 billion in the month of August. This may have been a result of flight-to-quality and risk aversion. US equity purchases were down $1 billion for the month between both private and public investors.

Year-over-year, net foreign purchases of long-term US securities stood at $798 billion, less than the $1 trillion plateau we have been accustomed to. This number is likely to fall even further as the volatile months of September and October are not accounted for.

Read Full Report.

Print Friendly, PDF & Email