US Flow of Funds: Treasury International Capital System (TICS)

US Flow of Funds: Treasury International Capital System (TICS) July 17, 218 Dr. Edward Yardeni 516-972-7683 eyardeni@ Mali Quintana 48-664-1333 aquintana@ Please visit our sites at blog. thinking outside the box

Table Of Contents Table Of Contents US Capital Inflows: Total 1 US Capital Inflows: T-Bills 2 Foreign Purchases of Treasury & Agency Bonds 3 Foreign Purchases of Treasury Bonds & Notes 4 Foreign Purchases of US Agency Bonds 5 US Capital Inflows: Long-Term Securities 6-7 US Capital Inflows: Equities 8 US Capital Inflows: Treasury Notes & Bonds 9 US Capital Inflows: Agency Bonds 1 US Capital Inflows: Corporate Bonds 11 US Capital Inflows: Japan 12 US Capital Inflows: China 13 US Capital Inflows: UK 14 US Capital Inflows: Europe ex UK 15 July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

25 2 15 1 Figure 1. NET SECURITIES PURCHASED BY FOREIGNERS FROM US RESIDENTS (billion dollars, annual rate) Total* US Capital Inflows: Total 25 2 15 1 5-5 -1-15 2 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Total Excluding US Treasury Bills** 5-5 -1-15 2 1 1-1 2 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219-1 2 1 US Treasury Bills Purchased by Foreigners 1-1 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 * Treasury bills, notes & bonds, agency bonds, corporate bonds, and equities. ** Treasury notes & bonds, agency bonds, corporate bonds, and equities. -1 Page 1 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

2 15 Figure 2. US Capital Inflows: T-Bills NET PURCHASES OF US TREASURY BILLS BY FOREIGNERS (billion dollars) 2 15 1 Total 1 5 5-5 -5-1 1 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219-1 1 5 Private Foreign 5-5 1 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219-5 1 5 Official Foreign 5-5 -5-1 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219-1 Page 2 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

19 17 15 13 11 9 7 5 3 1-1 -3-5 -7 15 Figure 3. Foreign Purchases of Treasury & Agency Bonds FOREIGN PURCHASES OF US TREASURY & AGENCY BONDS (billion dollars, annualized) Total Foreign: Treasury & Agency Bonds 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 19 17 15 13 11 9 7 5 3 1-1 -3-5 -7 15 1 5 Private Foreign: Treasury & Agency Bonds 1 5-5 -5-1 1 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219-1 1 5 Official Foreign: Treasury & Agency Bonds 5-5 -5-1 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 3-month average -1 Page 3 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

19 17 15 13 11 9 7 5 3 1-1 -3-5 -7-9 -11 15 Figure 4. Foreign Purchases of Treasury Bonds & Notes FOREIGN PURCHASES OF US TREASURY BONDS & NOTES (billion dollars, annualized) Total Foreign: Treasury Bonds & Notes 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 19 17 15 13 11 9 7 5 3 1-1 -3-5 -7-9 -11 15 1 5 Private Foreign: Treasury Bonds & Notes 1 5-5 -5-1 1 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219-1 1 5 Official Foreign: Treasury Bonds & Notes 5-5 -5-1 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 3-month average -1 Page 4 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

9 7 Figure 5. Foreign Purchases of US Agency Bonds FOREIGN PURCHASES OF US AGENCY BONDS (billion dollars, annualized) 9 7 5 3 1 5 3 1-1 -3-5 -7-9 5 Total Foreign: US Agency Bonds 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Private Foreign: US Agency Bonds -1-3 -5-7 -9 5-5 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219-5 Official Foreign: US Agency Bonds -5 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 3-month average -5 Page 5 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

28 24 2 16 12 8 4-4 -8-12 Figure 6. US Capital Inflows: Long-Term Securities NET BONDS PURCHASED BY FOREIGNERS FROM US RESIDENTS (billion dollars, annual rate) US Treasury Notes & Bonds, Government Agency, and Corporate Bonds 29 21 211 212 213 214 215 216 217 218 219 28 24 2 16 12 8 4-4 -8-12 5 5 3 1 3 1-1 -3 US Government Agency Bonds -1-3 -5 29 21 211 212 213 214 215 216 217 218 219-5 5 4 3 2 1-1 -2-3 -4 29 21 211 212 213 214 215 216 217 218 219 3-month average US Corporate Bonds 5 4 3 2 1-1 -2-3 -4 Page 6 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

US Capital Inflows: Long-Term Securities 3 24 18 12 Figure 7. NET SECURITIES PURCHASED BY FOREIGNERS FROM US RESIDENTS (billion dollars) Grand Total* 12-month sum 3-month sum annual rate 3 24 18 12 6-6 8 6 4 2-2 -4 1 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Asia 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 6-6 8 6 4 2-2 -4 1 5 Europe 5-5 -5-1 65 55 45 35 25 15 5-5 -15-25 -35 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Rest of World 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 * Includes Treasury bonds and notes, government agency bonds, US corporate bonds, US corporate stocks, foreign bonds, and foreign stocks. -1 65 55 45 35 25 15 5-5 -15-25 -35 Page 7 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

55 45 35 25 15 5-5 -15-25 21 17 13 9 5 1-3 -7 26 22 18 14 1 6 2-2 -6-1 -14-18 2 15 1 5-5 -1-15 Figure 8. NET SECURITIES PURCHASED BY FOREIGNERS FROM US RESIDENTS (billion dollars) US Corporate Stocks: Total 12-month sum 3-month sum annual rate 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Asia 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Europe Rest of World 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 US Capital Inflows: Equities 55 45 35 25 15 5-5 -15-25 21 17 13 9 5 1-3 -7 26 22 18 14 1 6 2-2 -6-1 -14-18 2 15 1 5-5 -1-15 Page 8 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

US Capital Inflows: Treasury Notes & Bonds 18 16 14 12 1 8 6 4 2-2 -4-6 -8 Figure 9. NET SECURITIES PURCHASED BY FOREIGNERS FROM US RESIDENTS (billion dollars) US Treasury Notes & Bonds: Total 12-month sum 3-month sum annual rate 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 18 16 14 12 1 8 6 4 2-2 -4-6 -8 5 4 3 2 1-1 -2-3 -4-5 -6-7 55 45 35 25 15 5-5 -15-25 -35-45 35 25 15 5-5 -15-25 -35-45 Asia 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Europe 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Rest of World 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 5 4 3 2 1-1 -2-3 -4-5 -6-7 55 45 35 25 15 5-5 -15-25 -35-45 35 25 15 5-5 -15-25 -35-45 Page 9 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

US Capital Inflows: Agency Bonds 11 9 Figure 1. NET SECURITIES PURCHASED BY FOREIGNERS FROM US RESIDENTS (billion dollars) 11 9 7 5 3 1 US Government Agency Bonds: Total 12-month sum 3-month sum annual rate 7 5 3 1-1 -1-3 -3-5 3 25 2 15 1 5-5 -1-15 -2 3 25 2 15 1 5-5 -1-15 -2 2 15 1 5-5 -1-15 -2-25 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Asia 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Europe 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Rest of World 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219-5 3 25 2 15 1 5-5 -1-15 -2 3 25 2 15 1 5-5 -1-15 -2 2 15 1 5-5 -1-15 -2-25 Page 1 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

US Capital Inflows: Corporate Bonds 85 75 65 55 45 35 25 15 5-5 -15-25 Figure 11. NET SECURITIES PURCHASED BY FOREIGNERS FROM US RESIDENTS (billion dollars) US Corporate Bonds: Total 12-month sum 3-month sum annual rate 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 85 75 65 55 45 35 25 15 5-5 -15-25 21 19 17 15 13 11 9 7 5 3 1-1 -3-5 5 4 3 2 1-1 -2 175 15 125 1 75 5 25-25 -5-75 Asia 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Europe 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 Rest of World 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 21 19 17 15 13 11 9 7 5 3 1-1 -3-5 5 4 3 2 1-1 -2 175 15 125 1 75 5 25-25 -5-75 Page 11 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

9 7 5 3 1-1 -3 6 4 2-2 -4-6 -8 4 3 2 1-1 -2 Figure 12. US Capital Inflows: Japan JAPAN: NET SECURITIES PURCHASES BY FOREIGNERS FROM US RESIDENTS (billion dollars) Grand Total* 12-month sum 3-month sum annual rate 2 22 24 26 28 21 212 214 216 218 22 US Corporate Stocks 2 22 24 26 28 21 212 214 216 218 22 US Treasury Bonds & Notes 2 22 24 26 28 21 212 214 216 218 22 9 7 5 3 1-1 -3 6 4 2-2 -4-6 -8 4 3 2 1-1 -2 15 1 5 US Government Agency Bonds 15 1 5-5 -5-1 1 5 2 22 24 26 28 21 212 214 216 218 22 US Corporate Bonds -1 1 5-5 2 22 24 26 28 21 212 214 216 218 22 * Includes Treasury bonds and notes, government agency bonds, US corporate bonds, US corporate stocks, foreign bonds, and foreign stocks. -5 Page 12 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

9 7 5 3 1-1 -3 2 Figure 13. US Capital Inflows: China NET SECURITIES PURCHASES BY FOREIGNERS FROM US RESIDENTS: CHINA (billion dollars) Grand Total* 12-month sum 3-month sum annual rate 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 9 7 5 3 1-1 -3 2 1 US Corporate Stocks 1-1 -1-2 3 2 1-1 -2-3 2 1-1 -2 1 8 6 4 2-2 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 US Treasury Bonds & Notes 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 US Government Agency Bonds 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 US Corporate Bonds 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 219 * Includes Treasury bonds and notes, government agency bonds, U.S. corporate bonds, U.S. corporate stocks, foreign bonds, and foreign stocks. -2 3 2 1-1 -2-3 2 1-1 -2 1 8 6 4 2-2 Page 13 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

155 135 115 95 75 55 35 15-5 -25-45 -65 2 Figure 14. US Capital Inflows: UK NET SECURITIES PURCHASES BY FOREIGNERS FROM US RESIDENTS: UNITED KINGDOM (billion dollars) Grand Total* 12-month sum 3-month sum annual rate 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 155 135 115 95 75 55 35 15-5 -25-45 -65 2 1 US Corporate Stocks 1-1 6 4 2-2 -4 3 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 US Treasury Bonds & Notes 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19-1 6 4 2-2 -4 3 2 1-1 US Government Agency Bonds 2 1-1 -2 4 3 2 1-1 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 US Corporate Bonds 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 * Includes Treasury bonds and notes, government agency bonds, US corporate bonds, U.S. corporate stocks, foreign bonds, and foreign stocks. -2 4 3 2 1-1 Page 14 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

65 45 25 5-15 -35 3 2 1-1 3 2 1-1 -2-3 1 5 Figure 15. NET SECURITIES PURCHASES BY FOREIGNERS FROM US RESIDENTS: EUROPE EX UNITED KINGDOM (billion dollars) Grand Total* 12-month sum 3-month sum annual rate 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 US Corporate Stocks US Capital Inflows: Europe ex UK 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 US Treasury Bonds & Notes 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 65 45 25 5-15 -35 3 2 1-1 3 2 1-1 -2-3 1 5-5 -1 US Government Agency Bonds -5-1 -15 2 1-1 -2 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 US Corporate Bonds 95 96 97 98 99 1 2 3 4 5 6 7 8 9 1 11 12 13 14 15 16 17 18 19 * Includes Treasury bonds and notes, government agency bonds, US corporate bonds, US corporate stocks, foreign bonds, and foreign stocks. -15 2 1-1 -2 Page 15 / July 17, 218 / US Flow of Funds: Treasury International Capital System (TICS)

Copyright (c) 218. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on, blog., http://blog. and YRI s Apps for ipads and iphones are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company s stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed on any product, service, report, email or website are proprietary to and constitute valuable intellectual property. No material from any part of, blog., http://blog. and YRI s Apps for ipads and iphones may be downloaded, transmitted, broadcast, transferred, assigned, reproduced or in any other way used or otherwise disseminated in any form to any person or entity, without the explicit written consent of All unauthorized reproduction or other use of material from Yardeni Research, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Yardeni Research, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights. The recipient should check any email and any attachments for the presence of viruses. accepts no liability for any damage caused by any virus transmitted by this company s emails, website, blog and Apps. Additional information available on request. requests@