Treasury Sales By Foreigners Hit Record High In April

The monthly TIC (foreign capital flows) data gets less respect than it should. Perhaps it is because it is two months delayed, or perhaps due to the Treasury Department labyrinth one has to cross in order to figure out what is going on. Either way, for those who do follow the data set, will know by now that in April, foreign investors, official and private, sold $54.5 billion. Why is this number of note? Because it is the biggest monthly sale of Treasurys by foreigners in the history of the data series. The TSY revulsion was somewhat offset by a jump in MBS purchases, which saw $23 billion in acquisitions, while corporate bonds were sold to the tune of $4.5 billion. Finally, looking at equities, foreigners were responsible for some $11.2 billion in US stock purchases. The great rotation may not be working domestically, but it seems to be finally impacting foreign investors.

As for the question who sold the most US paper, the answer is below: not surprisingly, Japan is at the top, and we can only imagine the proceeds from the sale were used to fund (currently even more money losing) purchases in the Nikkei, which is currently at levels last seen in March, or before the great BOJ intervention.