Japan, China Lead Foreign Government Retreat From US Treasurys Amid Currency Fears
Foreign governments reduced their holdings of U.S. Treasurys in March, a trend driven by the Middle East war and its impact on global energy prices. Central banks, particularly in Asia, liquidated dollar reserves to defend their local currencies against a significant energy shock that caused exchange rates to fall. This sell-off, with major holders like China and Japan cutting their positions, reflects both currency intervention needs and tactical portfolio adjustments amid market volatility and rising inflation fears.
John Q. Hosedrinker