Forexpros – U.S. Treasury International Capital rose more-than-expected in May, 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 USD55.0 billion in May, up from purchases of USD27.2 billion in April.
Analysts had expected Treasury International Capital purchases to total USD45.7 billion in May.
Foreign residents increased their holdings of long-term U.S. securities in May, as net purchases were USD50.1 billion. Net purchases by private foreign investors were USD19.9 billion, and net purchases by foreign official institutions were USD30.2 billion.
At the same time, U.S. residents decreased their holdings of long-term foreign securities, with net sales of USD4.9 billion.
Taking into account transactions in both foreign and U.S. securities, the net foreign purchases of long-term securities were USD55.0 billion.
According to the data, Japan purchased USD15.4 billion, after buying USD13.5 billion in the preceding month.
The U.K. bought USD25.3 billion of U.S. Treasuries, after purchasing USD13.9 billion in February.
China purchased USD5.2 billion in U.S. Treasuries in May, after buying USD20.4 billion in the preceding month.
Following the release of the data, the U.S. dollar was mildly lower against the euro, with EUR/USD easing up 0.07% to trade at 1.2280.
Meanwhile, U.S. stock index futures held on to gains. The Dow Jones Industrial Average futures pointed to a rise of 0.4%, S&P 500 futures indicated an increase of 0.35%, while the Nasdaq 100 futures signaled a 0.55% gain at the open.
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