Foreign Buyers Desert US Treasury Bond Market As Supply Increases
Foreign buyers of U.S. government debt are drying up as investors look for higher yields.
Data from the Treasury Department showed that foreign buyers, including central banks, financial institutions and private investors, were net sellers to the tune of $1.7 billion in September. The first time foreign investors were net sellers in more than two years.
And, as foreign demand is dropping, supply is increasing. The Federal Reserve, as part of its program to slim down its balance sheet following a period of hectic buying during the pandemic, is selling around $60 billion a month.
The Treasury has issued around $2 trillion in new debt so far this year.
See Also: Inflation Is Alread
