Amid rising concerns about a potential “death spiral” in the U.S. Treasury market, major international investors remain unfazed. Despite warnings from incoming Vice President JD Vance, foreign funds continue to show confidence in U.S. bonds.
What Happened: European money managers, Australian pension funds, and Japanese insurers are still favoring U.S. Treasuries, attracted by their yield premiums compared to other markets. The depth and liquidity of the U.S. market further enhance their confidence, Bloomberg reported on Thursday.
Investors are also optimistic about Donald Trump‘s decision to nominate hedge fund manager Scott Bessent as Treasury Secretary. Bessent’s plans to cut taxes and deregulate to reduce the deficit have reassured many investors, according to Bloomberg.
Foreign funds held $7.33 trillion in long-term U.S. debt by the end of October, slightly below the record high in September. Despite the…
