Foreign Central Banks & Governments Dumped Treasuries, Led by China/Hong Kong & Japan which Raised USD for Yen Invention
But private-sector holdings remained at huge record, with the big seven financial centers leading the charge.
Source: Wolf Street
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DW NOTE
China and Japan liquidating Treasuries to defend currencies isn't a vote of confidence — it's a forced sale. When your central bank has to burn dollar reserves to stop a rout, that's not portfolio rotation, that's triage. The private sector stepped in because yields finally compensated for the risk of holding IOUs from a government running a 6% deficit with inflation at 3.5% and rates frozen. That bid won't last if the Fed stays paralysed while the deficit compounds.