Reported 8 months ago
Goldman Sachs analysts suggest that the recent overestimation of net selling of US Treasuries since 2021 has been corrected owing to a new valuation-adjusted measure of holdings, indicating that most regions have not actively been selling Treasuries. The decline in holdings is primarily due to US rate selloffs and foreign exchange interventions, rather than a de-dollarization motive. The analysts believe that claims about the Dollar’s downfall are exaggerated and that recent Treasury holdings align with such a view. New data from Treasury on cross-border transactions has revealed changes in valuation from pricing adjustments, with insights on China’s Treasury holdings indicating a possible custodial bias, ultimately suggesting that China’s Treasury holdings have remained relatively stable.
Source: YAHOO