Markets are watching closely for any signs foreign investors are souring on U.S. debt. A pullback in bond buying from central banks could send borrowing costs higher if other investors don’t fill the gap, potentially putting the U.S. government in a tight spot.
President Donald Trump’s chaotic tariff rollout in April marked the high point of the “Sell America” trade as stocks, bonds, and the dollar all sank. Since then, equities have rallied dramatically to pre- “Liberation Day” levels, and Treasury yields, which fall as bond prices rise, have settled.
A sinking dollar remains one of the biggest stories on Wall Street in 2025, though, and monetary authorities seem to be reducing their exposure to American bonds. As large and stable central bank buyers take a step back, it’s fueling concern that more turbulence could be careening into the fixed-income market.
“The other big thing that we worry about is…
