WASHINGTON, D.C. — Foreign investors pulled a net $25.0 billion out of U.S. financial markets in January, according to new federal data, a shift that could signal changing global demand for American assets.
What This Means for You
- Foreign money flowing out of U.S. markets can influence interest rates and borrowing costs
- Continued outflows could affect demand for U.S. government debt
- The data reflects global investor behavior, not immediate changes to the economy
The U.S. Department of the Treasury released its latest Treasury International Capital, or TIC, report Monday, offering a snapshot of how foreign investors are buying and selling U.S. assets. TIC data tracks cross-border investment flows, including purchases of stocks, bonds, and short-term securities.
Breakdown of January Flows
The report shows a total net outflow of $25.0 billion in January, meaning more foreign capital left U.S. markets than entered.
That figure reflects two competing trends:
- Private foreign investors recorded net outflows of $76.1 billion
- Foreign governments and central banks, known as official institutions, recorded net inflows of $51.1 billion
Despite the overall outflow, foreign investors continued buying long-term U.S. securities, such as Treasury bonds and corporate debt.
Foreign residents purchased a net $63.5 billion in long-term U.S. securities during the month. Of that:
- $42.0 billion came from private investors
- $21.4 billion came from foreign official institutions
At the same time, U.S. investors increased their holdings of foreign long-term securities, buying a net $47.9 billion.
After accounting for adjustments—such as stock swaps used in cross-border transactions—net foreign purchases of long-term U.S. securities totaled $15.5 billion.
Short-Term and Banking Activity
The data also shows mixed activity in short-term instruments and banking flows.
Foreign investors reduced their holdings of U.S. Treasury bills, which are short-term government debt, by $10.2 billion. However, their overall holdings of short-term U.S. securities and related assets increased by $17.8 billion.
Meanwhile, U.S. banks reduced their dollar-denominated liabilities to foreign residents by $58.3 billion, indicating a decline in short-term borrowing from overseas sources.
What the Data Can—and Cannot—Show
Treasury officials caution that TIC data provides an incomplete picture of global investment flows.
The data is largely based on where assets are held, not who ultimately owns them. For example, a foreign investor may purchase U.S. securities through an account in another country, which can obscure the true source of ownership.
Additionally, some U.S. assets held abroad are not captured in the dataset, making it difficult to draw precise conclusions about changes in foreign investment by individual countries.
What Comes Next
The next TIC report, covering February 2026 data, is scheduled for release on Wednesday, April 15.
Full data and detailed tables are available on the Treasury Department’s website at https://home.treasury.gov/data/treasury-international-capital-tic-system.
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