Data released by Treasury International Capital (TIC) this afternoon underlined a growing trend among international investors. A reluctance to buy into American stocks and bonds has become more apparent as the US Congress falters on its debt limit talks ahead of the impending August 2 deadline.
The TIC Long-Term Purchases report measures the difference in value between foreign securities purchased by US citizens and American securities purchased by foreigners. Expectations were for an increase from the previous month’s reading of $30.6B to $48.4B. The reported value, however, witnessed a sharp slump with an actual reading of $23.6B. The news serves to highlight the hesitation present in this risk averse market, and a growing uncertainty in the future value of US investments should Congress default on its debt come August 2.
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