US Treasury TIC November report (USD): Net long-term flow (ex-swaps/other) +212.0bln (rev.-22.5bln, prev.-37.3bln)

The latest TIC report shows a significant inflow into U.S.

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US Treasury TIC November report (USD): Net long-term flow (ex-swaps/other) +212.0bln (rev.-22.5bln, prev.-37.3bln)

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  • Net long-term flow (ex-swaps/other) 220.2bln (rev.+30.9bln, prev.+17.5bln).
  • Net foreign holdings of US Treasury bonds, 85.6bln (rev.-60.1bln, prev.-61.2bln).
  • Net long-term flow (incl. swaps/other) 220.2bln (rev.+30.9bln, prev.+17.5bln).
  • Net official capital flow 44.9bln (rev.-19.2bln, prev.-19.2bln).
  • Japan’s U.S. Treasury holdings 1.203trln (rev. 1.200tln).
  • UK's US Treasury holdings 889bln in November (prev. 878bln).
  • China's US Treasury securities holdings 683bln (prev. 689bln)
Context

Treasury securities, with net long-term flows notably increasing, which suggests strong foreign demand and could indicate confidence in U.S. economic stability. The uptick in foreign holdings, particularly from Japan and the UK, might influence the dollar's strength and could provide further context for rate expectations as it reflects international investor sentiment towards U.S. debt. Overall, this data points to a favorable outlook for U.S. assets, potentially tightening spreads in the fixed income space.

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