Global Shift in US Treasury Holdings Raises Concerns

Foreign nations, including Denmark, China, and India, are notably decreasing their investments in US Treasury bonds due to apprehensions regarding US fiscal stability. According to NS3.AI, this movement could result in elevated US bond yields, stricter financial conditions, and heightened pressure on liquidity-sensitive assets like stocks and cryptocurrencies. Despite Japan and the UK boosting their holdings, the widespread selloff poses a threat of causing a ripple effect that could influence global markets and the valuation of risk assets.