Lyn Alden: Foreign public sector withdraws from U.S. treasuries as domestic funding rises

Lyn Alden: Foreign public sector withdraws from U.S. treasuries as domestic funding rises
Foreign buyers slow U.S. treasury demand

Lyn Alden, founder and CEO at https://x.com/lynaldencontact, outlines a shift in U.S. treasury markets.

Alden explains that foreign public sector entities, such as central banks, have not been buying U.S. treasuries for more than a decade, with China leading this trend. She adds that while the foreign private sector continues to buy treasuries, overall foreign investment is not keeping pace with treasury issuance, leading to an increasing reliance on domestic funding.

Alden recently reported that unrealized losses at U.S. banks have narrowed to $300 billion from $700 billion in 2023, according to her analysis. In a separate note, she highlighted the Bank of Japan's substantial reserves and its ability to affect sentiment among yen bearish traders through interventions. Both observations point to ongoing developments in global financial institutions.

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