TIC (Treasury International Capital)

The Treasury International Capital (TIC) data serves as an economic indicator that monitors cross-border investments in the United States. This data offers valuable insights into the interest of foreign investors in U.S. securities, which can significantly affect the nation’s financial markets and the value of the U.S. dollar.

What is the TIC data?
The TIC data records the transactions involving both long-term and short-term U.S. securities by foreign residents, as well as foreign securities transactions conducted by U.S. residents. Collected on a monthly basis, this data is crucial for understanding the movement of capital into and out of the United States. By observing these capital flows, policymakers and investors can better comprehend the overall demand for U.S. assets and the state of the U.S. economy.

How to read TIC data
The TIC report is divided into two primary sections: long-term securities transactions and short-term securities transactions. Long-term securities encompass U.S. Treasury bonds, government agency bonds, corporate bonds, and equities. In contrast, short-term securities include U.S. Treasury bills and other debt instruments with maturities of less than one year. When analyzing the TIC report, the main focus should be on the net foreign purchases of long-term U.S. securities, which represents the difference between foreign purchases of U.S. securities and U.S. purchases of foreign securities. A positive figure indicates that foreign investors are acquiring more U.S. securities than U.S. investors are buying foreign securities, resulting in a net capital inflow. Conversely, a negative figure suggests a net capital outflow.

Why is the TIC data important?
The TIC report is vital for several reasons: it helps assess foreign demand for U.S. securities, which can influence interest rates and the value of the U.S. dollar. A consistent net capital inflow reflects confidence in the U.S. economy, while a net outflow may raise concerns about the country’s economic outlook. Additionally, the data can impact 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 monitored by policymakers, investors, and analysts to evaluate the health of the U.S. economy and its potential effects on financial markets.

Who publishes the TIC data?
The U.S. Department of the Treasury is tasked with compiling and publishing the TIC report. The Treasury gathers 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 released monthly, typically around the 15th of each month, with a delay of approximately 45 days from the reporting period. The data is publicly accessible on the U.S. Department of the Treasury’s website, where interested individuals can view and analyze the results. Furthermore, financial news outlets and market analysis platforms often provide coverage of the TIC report upon its release, offering insights and interpretations of the findings.