Central Banks Add to the Case for Steeper Treasuries Yield Curve
- Foreign banks’ Treasuries holdings reach highest since 2015
- Buying usually concentrated in short end, Credit Agricole says
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Central banks around the globe are stocking up on Treasuries again, giving bond traders one more reason to wager on a steeper U.S. yield curve in the months ahead.
The amount of Treasuries owned by foreign central banks and held in custody at the Federal Reserve Bank of New York topped $3 trillion last week, the highest level since December 2015. The Fed’s data don’t reveal who’s been buying, but some of the biggest holders, most notably Japan and China, have increased ownership this year, Treasury Department data show.