US Dollar Little Changed as TIC Data Shows Continued Outflows

Talking Points:

• Foreign holdings US Treasury securities as of the end of May declined by $30.2 billion
• Foreign interests sold a net $8.3 billion in US equities in May vs. to $2.8 billion in April
• US corporate bond holdings rose $12.7 billion in May versus 5.5billion sold in April

Having trouble trading the US Dollar? This may be why.

The US Dollar was little-changed as the Treasury reported a net outflow of $18 billion as of the end of May as many countries unloaded US debt from their balance sheets. Most notably, Japan and Saudi Arabia sold $9.6 and $9.3 billion of treasury securities respectively. The largest buyer for the month of May was Russia, with $5.6 billion in purchases. China increased their holdings of US debt by $1.2 billion. Corporate bonds saw a net inflow of $12.7 billion in May, a significant increase from the previous month which saw $5.5 billion of sales.

US equity outflows continued for the fourth month in a row as selling increased by $8.3 billion. During the May reporting period for this report, the S&P 500 increased by 0.37 percent, the Dow Jones decreased by 0.58 percent and the US Dollar appreciated by 2.44 percent.

Below is a US dollar chart showing the reporting period of May highlighted.

(Source: Tradingview)

(Source: Tradingview)

(Source: Tradingview)