Big shift in Treasury holdings last month worth watching.
Japan dumped $26B in US debt in June — down to $1.117T
China also cut $26B — now at $633B, lowest since September 2008
UK trimmed to $940B
Net foreign demand basically dried up. Total foreign holdings of Treasuries rose only $6.8B vs $56.6B in May.
This isn't just noise. When major holders step back, it raises questions about demand, yields, and who's stepping in to buy. The Fed? Domestic buyers?
China's holdings hitting a 16-year low is a signal. Whether it's diversification, geopolitics, or yield hunting elsewhere, the trend is clear.
Keep an eye on Treasury auctions and the 10-year yield. If foreign appetite stays weak, rates could stay elevated longer than the market expects.
Japan dumped $26B in US debt in June — down to $1.117T
China also cut $26B — now at $633B, lowest since September 2008
UK trimmed to $940B
Net foreign demand basically dried up. Total foreign holdings of Treasuries rose only $6.8B vs $56.6B in May.
This isn't just noise. When major holders step back, it raises questions about demand, yields, and who's stepping in to buy. The Fed? Domestic buyers?
China's holdings hitting a 16-year low is a signal. Whether it's diversification, geopolitics, or yield hunting elsewhere, the trend is clear.
Keep an eye on Treasury auctions and the 10-year yield. If foreign appetite stays weak, rates could stay elevated longer than the market expects.