According to ChainCatcher, Goldman Sachs rate strategists noted that there are no obvious signs of foreign investors massively selling U.S. Treasury bonds in recent weeks, but global portfolios are expected to gradually adjust.
The strategists stated: "The reset of U.S. bond risk premiums and the weakening of the dollar are adjustments needed to compensate for and incentivize future global investor demand in the face of portfolio risk deterioration." They pointed out that under the environment of increased safe asset supply, U.S. Treasury bonds may face pressure from gradual adjustments in global portfolios, "but the scale of foreign holdings combined with U.S.-specific risk factors at least reinforces our view that relative risk premium adjustments should have a certain sustainability."
