Treasuries Suffer First Outflows Since 2021 in September Rout
- Foreign investor net Treasury outflow at $1.7 billion in Sept.
- China and Japan cut Treasury stockpiles in September
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The savage sell-off that hit Treasuries in prior months was driven by concerns a buyers’ strike had hit the $26 trillion bond market. It’s now confirmed: at least one set of investors headed for the exits back in September.
Foreign investors sold $1.7 billion more worth of Treasuries than they bought during that month, data from the US Treasury department shows. This marked the first net outflows since May 2021 and capped the weakest three months for foreign demand since the period ending May 2020.