Sovereign funds to turn to non-dollar bonds amid AI-driven liquidity crunch, Citi banker says - Centre Daily Times
Sovereign funds to turn to non-dollar bonds amid AI-driven liquidity crunch, Citi banker says - Centre Daily Times
Source: Centre Daily Times
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DW NOTE
Sovereign wealth funds don't abandon dollar bonds because of liquidity concerns — they abandon them when the risk-adjusted return turns negative. The real liquidity crunch isn't in AI infrastructure; it's in Treasury auctions that need to clear $1.9 trillion in annual deficits while the Fed is pricing a 50% probability of hiking rates with 10-year yields already at 5.21%.