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Chart of the Day: Treasury dump

Foreign governments have been selling US Treasury and bonds at a record pace. As the dollar rose since 2014 summer, global central banks have been selling treasuries in order to defend the value of their currencies. In 2…

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Chart of the Day: Treasury dump
Chart courtesy - ft.com, Goldman sachs

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Foreign governments have been selling US Treasury and bonds at a record pace. As the dollar rose since 2014 summer, global central banks have been selling treasuries in order to defend the value of their currencies. 

In 2016, the Brexit referendum and the election of Donald Trump triggered massive policy uncertainties, prompting bond investors to sell long-dated debt. Inflation expectations are also playing a key role in these selloffs.

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