Forexpros – U.S. Treasury International Capital rose more-than-expected in March, as foreign demand for U.S. assets increased, official data showed on Tuesday.
In a report, the U.S. Department of the Treasury said that net foreign purchases of long-term securities totaled USD36.2 billion in March, up from purchases of USD10.1 billion in February.
Analysts had expected Treasury International Capital purchases to total USD19.4 billion in March.
Foreign residents increased their holdings of long-term U.S. securities in March, as net purchases totaled USD22.3 billion. Net sales by private foreign investors were USD4.0 billion, and net purchases by foreign official institutions were USD26.3 billion.
At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of USD13.9 billion.
Taking into account transactions in both foreign and U.S. securities, the net foreign purchases of long-term securities were USD36.2 billion.
According to the data, Japan sold USD2.4 billion, after purchasing USD2.6 billion in the preceding month.
The U.K. sold USD4.1 billion of U.S. Treasuries, after purchasing USD2.0 billion in February.
China purchased USD14.7 billion in U.S. Treasuries in March, after selling USD11.0 billion in the preceding month.
Following the release of the data, the U.S. dollar was higher against the euro, with EUR/USD shedding 0.23% to trade at 1.2793.
Meanwhile, U.S. stock future indices pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a decline of 0.1%, S&P 500 futures pointed to a flat open, while the Nasdaq 100 futures pointed to a rise of 0.2%.
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