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J.P.Morgan Point To Rolling Out The Curve In TIC Flow Data

US TSYS

J.P.Morgan note that monthly TIC data for April showed that "foreign investors bought $49.6bn long-term Treasuries over the month, with $43.6bn of this demand emanating from private investors. Separate from the long-term data, foreign investor holdings of T-bills declined by $60.1bn over the month of April, the second consecutive month that international investors have shed front-end securities. We think these flows likely represent extension flows as foreign investors let their T-bill holding roll off at maturity amid a highly negative net issuance environment to extend into higher yielding alternatives, reflecting relatively elastic demand. We forecast foreign private demand should remain relatively firm over 2021, as Treasuries appear attractive relative to foreign government bonds on a short-term rolling FX hedged basis."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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