Eurodollar University New Treasury Data Shows Foreigners Are Doing Something UNPRECEDENTED
10 snips
Aug 19, 2025 Recent tick data reveals that foreign investors are actually increasing their holdings of U.S. Treasuries, contradicting the narrative of mass exits. The podcast delves into the intricacies of foreign engagement with U.S. dollar assets, urging listeners to focus on the data instead of misleading media narratives. It also addresses the complexities of the dollar's exchange value and how the euro dollar conditions impact treasury demand, highlighting a robust ongoing interest in these assets despite prevalent concerns.
AI Snips
Chapters
Transcript
Episode notes
Foreigners Are Buying Treasuries Again
- Foreigners are not abandoning U.S. Treasuries; they're buying record amounts as of June tick data.
- The mainstream narrative of a foreign exodus from Treasuries is contradicted by concrete Treasury Department data.
Debt Crisis Versus Treasury Demand
- The U.S. debt problem exists but doesn't automatically spark a Treasury-market collapse.
- Deflationary conditions can increase demand for Treasuries even as fiscal deficits rise.
DXY Paints A Narrow Picture
- Dollar exchange-value headlines (like DXY) mislead because they overweight the euro.
- Broader dollar measures show the dollar isn't being ditched and explain foreign demand for dollar assets.