United States Treasury International Capital (TIC) Net Long-Term Transactions

TIC Net Long-Term Transactions provide a sum of gross purchases of US securities by foreign investors minus gross sales of securities by foreigners to US citizens. The US Treasury releases the report monthly as part of Treasury International Capital (TIC) Data.

The report reflects the movement of most types of securities, such as treasuries, corporate shares and bonds.

However, the report cannot be considered complete, as it does not reflect the entire movement of assets. For example, if US securities purchased by a foreign resident are stored on a personal account in a third country, such securities will not be reflected in the report. In addition, foreigners can withhold US dollar and other assets, which are not accounted for in the TIC reports.

Despite the above reservations, the TIC report plays an important role in the economic news background and is closely monitored by investors. Transactions with foreign residents in long-term securities reflect the foreign participation in the US market and vice versa.

An increase in demand for US financial instruments may lead to an increase in the value of the US dollar, since foreign investors are forced to buy American currency for such transactions. Also, data on long-term transactions can affect interest rates. The indicator has the greatest impact on securities markets.