NewsMacro & flows
US allies cut Treasury buying 60%; Korea sells record $23.8B
60% drop: US allies cut Treasury buying to $174.3B in Jan–Aug. Japan nearly stops, Korea sells record $23.8B. Pressure on yields, EM and Argentina.
US-aligned nations bought a net $174.3B of Treasuries (ex-bills) in Jan–Aug, down 60%+ y/y and the lowest since 2021.
Japan barely bought ($389M); Korea sold a record $23.8B. Less price-insensitive demand means a higher term premium.
Watch: 10Y yield, Treasury auctions, EM spreads incl. Argentina.
Why it matters
Losing steady allied demand means the US must pay more to fund its deficit. Higher Treasury yields tighten global credit and weigh on risk assets, EM debt included.
Source: Bloomberg (via The Japan Times)
IMPA 8 of 10, its impact on the market: how it is scored.
Educational and informational content only. I am not a licensed financial advisor and nothing here is investment advice. Do your own research before making any decision.