The Treasury International Capital (TIC) data is an economic indicator that tracks cross-border investments in the United States.
The data provides insights into foreign investors’ appetite for U.S. securities, which can have significant implications for the country’s financial markets and the U.S. dollar.
What is the TIC data?
The TIC data captures the transactions of long-term and short-term U.S. securities by foreign residents and foreign securities transactions by U.S. residents.
The data is collected on a monthly basis and is essential for understanding the flow of capital in and out of the United States.
By monitoring these flows, policymakers and investors can gain insights into the overall demand for U.S. assets and the health of the U.S. economy.
How to read TIC data
The TIC report consists of two main sections: long-term securities transactions and short-term securities transactions. Long-term securities include U.S. Treasury bonds, government agency bonds, corporate bonds, and equities.
Short-term securities cover U.S. Treasury bills and other debt instruments with maturities of less than one year.
When reading the TIC report, the primary focus is on the net foreign purchases of long-term U.S. securities, which is the difference between foreign purchases of U.S. securities and U.S. purchases of foreign securities.
- A positive figure indicates that foreign investors are buying more U.S. securities than U.S. investors are buying foreign securities, leading to a net capital inflow.
- A negative figure suggests a net capital outflow.
Why is the TIC data important?
The TIC report is essential for several reasons:
- It helps gauge foreign demand for U.S. securities, which can impact interest rates and the U.S. dollar’s value.
- A sustained net capital inflow indicates confidence in the U.S. economy, while a net outflow may signal concerns about the country’s economic prospects.
- The data can influence U.S. monetary policy, as foreign investment in U.S. securities affects the money supply and credit conditions.
For these reasons, the TIC data is closely watched by policymakers, investors, and analysts to assess the U.S. economy’s health and the potential implications for financial markets.
Who publishes the TIC data?
The U.S. Department of the Treasury is responsible for compiling and publishing the TIC report.
The Treasury collects data from various sources, including banks, securities brokers, and other financial institutions, to ensure the report’s accuracy and comprehensiveness.
When is the TIC data released?
The TIC data is published monthly, usually around the 15th of each month, with a lag of around 45 days from the reporting period.
The data is publicly available on the U.S. Department of the Treasury’s website, where interested parties can access the data and analyze the results.
Additionally, financial news outlets and market analysis platforms often provide coverage of the TIC report upon its release, offering insights and interpretations of the report’s findings.