Treasury Sales Under Scrutiny as Foreign Demand Rises to Record
- Global funds snapped up 38% of U.S. 10-year sale this month
- One potential reason is central banks reallocating FX reserves
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An autopsy of this month’s blockbuster 10-year Treasury auction shows global funds bought a record amount. Traders will be scrutinizing this week’s sales for a possible repeat.
A breakdown of the Aug. 11 sale released by the Treasury on Monday showed the Foreign and International category, a group that includes foreign official entities, were awarded $15.4 billion of the $41 billion of notes sold, an all-time high. Their 38% share was the biggest proportion in over a decade.