TIC Net Capital Flows in United States

Measures the monthly net flow of foreign capital into U.S. financial assets (Treasuries, agency bonds, corporate bonds and equities), from both private investors and official institutions (central banks, sovereign funds). It gauges foreign demand for U.S. debt and assets.

Two key figures are published: TOTAL net flows (includes short-term debt and the change in banks own dollar liabilities) and LONG-TERM net flows (Net Foreign Acquisition of Long-Term Securities, bonds and equities beyond 1 year only). Both in millions of dollars, not seasonally adjusted, cumulating purchases minus sales for the month.

A positive, rising net flow signals the U.S. remains attractive for financing its current account deficit (making it easier to fund public debt at low rates); a negative or falling flow raises concern about the U.S. capacity to attract foreign capital and can push bond yields up and weaken the dollar.

Very volatile month to month (frequent large revisions), released late (~6-7 week lag) and not seasonally adjusted. It does not distinguish strategic long-term buying from short-term portfolio reshuffling, and official-sector figures (foreign central banks) can be distorted by custodial holdings booked via third countries (e.g. Chinese purchases recorded through Belgium/Luxembourg).