Foreign Central Banks Use Treasury Rout as Buying Opportunity
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Overseas central banks are piling into Treasuries in the face of the longest market rout this year.
Foreign official accounts raised their holdings of U.S. securities in custody at the Federal Reserve to $2.99 trillion as of May 13, the highest level in 2015, based on Fed data. Investors also clamored to buy Treasuries at government debt auctions this week, after a selloff that pushed U.S. 10-year yields to a six-month high of 2.36 percent this week. Treasuries climbed a second day Friday as a global rout in fixed-income assets eased.