4 Responses to Bond Market Conundrum 2.0? And U.S. Treasuries Held By Foreigners

  1. “We think this recycling of capital flows will be even greater than in the 2000’s as it will include some of the $10 trillion-plus stock of the past build up in foreign exchange reserves as capital flight in many emerging markets will flee to the U.S. as real rates rise, relative tax rates change, and global trade barriers increase.”

    I would argue that this stock that has built up has already “fled” to the US via central banking intervention in fx markets and US treasury purchases.

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