Foreigners Bought Most Stocks Since May 2011 In February, As Foreign Flows Become Manic Depressive

Tyler Durden's picture

The February TIC data is out and here are the notable items. Total long-term purchases across all securities classes came in at an underwhelming $10.1 billion on expectations of a $42.5 billion increase, although when combined with Short-Term transactions, the total rose to $107.7 billion, greater than expected. However, since this series includes extensive irrelevant noise, tracking just LT data on a sequential basis, shows that in February foreign purchases of the 4 key security classes (TSYs, Stocks, Agencies and Corporate bonds) came in at a relatively weak $24.8 billion, down from $95.7 billion in February, of which $15.4 billion was US Treasurys. What is notable is that equities accounted for $7.6 billion of this total, the largest foreign purchase of US equities since May of 2011. Well, if US consumers will not buy stocks at least foreigners stepped up, and it also explains where at least some demand came from.  It also means that the 6 month moving average of foreign stock dumping has finally reversed from all time lows. However, what chart 1 vividly shows, is that over the past several months foreign flows into US securities, previously stable regardless of global events, has also become Risk On - Risk Off, with ever increasing a monthly amplitude. In other words everyone now has a 30 day attention span tops. Finally, now that the UK has been "disambiguated" from Chinese data, and thus saw its holdings drop to a realistic $103 and about to slide into double digit territory for the first time in years, Chinese holdings in turn tose to $1178.9, the highest since the big selloff in December, while Japan continues to find better bargains in US paper, with its holdings soaring to a record $1.095.9 billion.

Total foreign flows into all US assets:

Foreign flows into US stocks:

Same with a 6 MMA: recently negative for the first time in years.

Foreign flows into US Treasurys:

And total monthly TSY holdings by country:

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Ted Baker's picture


rosiescenario's picture

The grass is greener on the other side of the fence because at that distance you cannot see the disease eating at it.....

rosiescenario's picture

....same applies to the U.S. dollar vs Euro.....

Stoploss's picture

Xna on the eurobagholderA.

That WAS supposed to be a secret..

Everybodys All American's picture

Euro Zone people in Greek, Spanish, and Italian banks or the US equity market? From their perspective it's a better alternative. I'm not saying it's going to work out in the long run though. But you can somewhat understand the attraction.

mayhem_korner's picture



There is a long history of non-indigenous imports that have wreaked havoc on US prosperity.  I wonder if these EU capital flows will fare better than these uber destroyers:

1)  Zebra mussels

2)  Japanese beetles

3)  Purple loosestrife

4)  Barry Soetoro

flyingpigg's picture

Foreign muppets moving into sitting duck position for the April decline

rosiescenario's picture

...would those be the same foreign muppets dumb enough to have bought our bundled know, the ones comprised of 1,000 sub prime loans put together, rated, and sold as AAA.....those muppets appear to be even dumber than our domestic ones.

slewie the pi-rat's picture

money is coming out of the long end to the short end?

SheepDog-One's picture

Foreigners buying US embrace the suckiness, losers.