US June TIC inflows beat forecasts as foreign Treasury holdings fall

U.S. net long-term Treasury International Capital, or TIC, inflows totaled $172.7 billion in June, above the $151.4 billion forecast, as foreign residents bought $207.1 billion of long-term U.S. securities while U.S. investors bought $34.4 billion of long-term foreign securities. Overall net TIC inflows were $133.5 billion; the older topic said May was revised to $132.2 billion, while the newer topic cited $131.5 billion. Separate holdings data showed foreign-held U.S. Treasuries fell $72.1 billion to $9.299 trillion, with Japan down about $26.4 billion to $1.116 trillion, China down $25.9 billion to $633.4 billion, its lowest level since September 2008, and the United Kingdom down to $939.9 billion. Treasury said the holdings figures reflect both valuation changes and transactions, but overseas net purchases of U.S. Treasuries slowed to $6.8 billion from $56.6 billion in May as the 30-year yield rose to 5.31%; the newer topic also said China increased gold reserves for a 21st straight month in July to 76.08 million troy ounces.

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