Treasury International Capital - TIC

DEFINITION of 'Treasury International Capital - TIC'

Select groups of capital which are monitored with regards to their international movement. Treasury international capital is used as an economic indicator that tracks the flow of Treasury and agency securities, as well as corporate bonds and equities, into and out of the United States. TIC data is important to investors, especially with the increasing amount of foreign participation in the U.S. financial markets.

BREAKING DOWN 'Treasury International Capital - TIC'

As demand for U.S. financial instruments increases, the value of the dollar is held up. This is because demand for U.S. dollars increases as they are needed to purchase U.S. securities. Strong demand also places downward pressure on interest rates.

Because this data can have a direct effect on interest rates and the value of the dollar, and because foreign ownership of U.S. debt is more prevalent than foreign ownership of U.S. equities, this data seems to have a larger effect on the bond markets than on the stock markets.

RELATED TERMS
  1. Treasury Direct

    The online market where investors can purchase federal government ...
  2. Long Bond

    The 30-year U.S. Treasury Bond. The long bond is so called because ...
  3. 30-Year Treasury

    A U.S. Treasury debt obligation that has a maturity of 30 years. ...
  4. Spot Rate Treasury Curve

    A yield curve constructed using Treasury spot rates rather than ...
  5. Treasury Budget

    Data released by the U.S. Treasury on a monthly basis that accounts ...
  6. U.S. Treasury

    Created in 1798, the United States Department of the Treasury ...
Related Articles
  1. Markets

    Treasury International Capital

    This important economic indicator can affect interest rates, dollar value and the bond markets.
  2. Markets

    China Dumps U.S. Treasury Securities in December

    On Tuesday, Treasury International Capital (TIC) data was released by the U.S. Department of the Treasury, which revealed that China’s holding of U.S. Treasury bonds in December has declined ...
  3. Markets

    The Importance Of U.S. Treasury Rates

    U.S. Treasury bond interest rates affect more than just bondholders! It impacts the day to day lives of all consumers.
  4. Markets

    Understanding Treasury Yield

    Treasury yield refers to the return on an investment in a U.S. government debt obligation, such as a bill, note or bond.
  5. Trading

    Spice Up Your Portfolio With International Bonds

    Going global can add flavor and diversity to an otherwise bland basket of bonds.
  6. Investing

    What is Treasury Stock?

    Treasury stock is a company’s own stock that it holds in its treasury for later use.
  7. Markets

    Cautionary Signs For International Investors

    "Going global" is a fashionable investing style, but investors should know the risks.
  8. Trading

    The U.S. Dollar And The Yen: An Interesting Partnership

    In order to make the USD/JPY relationship more understandable, we must look at the yen in terms of treasury bonds.
  9. ETFs & Mutual Funds

    Explaining Capital Flows

    The movement of money for investing, trade or business production, is commonly referred to as capital flows.
  10. ETFs & Mutual Funds

    20-Year Treasury Bond ETF Trading Strategies

    iShares 20-Year Treasury Bond ETF offers a highly liquid equity alternative to direct bond exposure.
RELATED FAQS
  1. Will speculators buy or sell Treasury bond futures contracts if they expect interest ...

  2. Which economic factors impact treasury yields?

    Discover the economic factors that impact Treasury yields. Treasury yields are the benchmark yield for the rest of the world, ... Read Answer >>
  3. What forms of debt security are available for the average investor?

    Discover the various different types of debt securities, issued by government entities or corporations, that are available ... Read Answer >>
  4. How will the Federal Reserve selling bonds affect the international value of the ...

  5. What are the maturity terms for Treasury bonds?

    Learn how treasury bonds pay interest, when they reach maturity and the differences between terms for treasury bonds and ... Read Answer >>
  6. How is the interest rate on a treasury bond determined?

    Explore the difference between interest rates and bond coupons, what determines current yield on debt instruments, and why ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center