PANews August 18 news, HSBC strategist Dhiraj Narula and economist Ryan Wang said in a report that if the Federal Reserve reduces its holdings of U.S. Treasuries, the Treasuries market may become more dependent on buyers that are more sensitive to prices. They wrote: “A reduction in Fed holdings will still affect the U.S. Treasuries market. If the growth in System Open Market Account (SOMA) holdings does not keep up with the growth in the size of U.S. Treasuries—whether due to passive or relative quantitative tightening, or to holdings growing only moderately—then ultimately a larger share of government financing demand must be absorbed by investors that are more sensitive to price.”